More Americans than forecast filed first-time claims for unemployment insurance payments last week as the labour market struggled to improve.
Applications for jobless benefits decreased 9,000 in the week ended Sept. 17 to 423,000, U.S. Labor Department figures showed today. Economists forecast 420,000 claims, according to the median estimate in a Bloomberg News survey. The average number of claims in the past month rose for a fifth straight week, to the highest level since July 16.
An elevated level of dismissals raises the odds U.S. companies may put off plans to increase employment, making it difficult for joblessness to fall below 9%. Citing ongoing weakness in the labour market, Federal Reserve policy makers announced yesterday they would use another unconventional monetary tool to spur economic growth and job gains.
"These numbers are consistent with a job market that is essentially in suspended animation," said Brian Jones, an economist Societe Generale in New York, who correctly forecast the level of claims.
"Anything that the Fed does to help the economy should help the labour market, but it takes time. We’ve got to see job growth before we can get more demand."
Estimates for first-time claims ranged from 408,000 to 430,000 in the Bloomberg survey of 45 economists. The U.S. Labor Department initially reported the prior week’s applications at 428,000.
A U.S. Labor Department official said today as the figures were released that the latest week’s data included no special circumstances.
