Applications for unemployment benefits higher than forecast
More Americans than forecast filed first-time claims for unemployment benefits last week as the labor market struggled to improve, Bloomberg reported.
Applications for jobless benefits decreased 9,000 in the week ended Sept. 17 to 423,000, according to figures released by the U.S. Department of Labor. Economists had forecast 420,000 claims. 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 that U.S. companies may put off plans to increase employment, making it difficult for joblessness to fall below 9 percent.
Citing ongoing weakness in the labor market, Federal Reserve policy-makers announced yesterday that 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 at Societe Generale, in an interview with Bloomberg. “Anything that the Fed does to help the economy should help the labor market, but it takes time. We’ve got to see job growth before we can get more demand.”
The jobless claim information comes as the stock market continues to struggle today.