Jobless claims unexpectedly fell last week
Applications for U.S. unemployment benefits unexpectedly fell last week to the lowest level in two months, a sign the labor market may be improving, Bloomberg reported.
Initial jobless claims dropped by 3,000 to 450,000 in the week ended Sept. 11, according to Labor Department figures released today in Washington. The median forecast was for a rise to 459,000, according to a Bloomberg News survey. The total number of people receiving unemployment benefits fell, and those getting extended payments plunged.
Though the pace of staffing reductions has slowed, hiring is needed to foster bigger gains in consumer spending, which accounts for 70 percent of the economy. Economists surveyed by Bloomberg News this month forecast that unemployment will hold above 9 percent through next year, a sign it will take years to recover the more than 8 million jobs lost in the recession.
“The labor market may finally be gaining traction after a long period of uncertainty,” said John Herrmann, senior fixed-income strategist at State Street Global Markets LLC in Boston. “This fits with the view that private payrolls in September should grow by nearly 100,000, possibly better.”
Jobless benefits applications were projected to rise from a previously reported 451,000 for the prior week, according to the median forecast of 42 economists in the Bloomberg survey. Estimates ranged from 435,000 to 476,000. Filings last week were the lowest since July 10.
The number of people continuing to receive jobless benefits fell by 84,000 in the week ended Sept. 4 to 4.49 million. They were forecast to drop to 4.46 million.
Companies added 67,000 workers to their payrolls in August, the Labor Department said Sept. 3. Overall employment dropped by 54,000 for a second month, as the government let go census workers. The unemployment rate rose to 9.6 percent from 9.5 percent.