The number of U.S. workers filing first-time claims for unemployment insurance fell more than forecast
last week to a level consistent with more job creation, a
government report showed Thursday.
Initial applications for jobless benefits declined by 19,000
to 332,000, the Labor Department said in Washington. The four-week
moving average of claims dropped to 342,000 from 343,500.
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Jobless claims have averaged 344,500 a week this year, down
from 402,000 in all of 2003, suggesting companies are reluctant to
let go of workers. Higher energy and raw materials costs have
restrained corporate profits may have slowed the pace of hiring in
recent months.
“The labor markets have been improving, but it’s been a
little bit choppy,” said Tim McGee, chief economist at U.S. Trust
Corp. in New York. “Claims have been stuck in a range that is
consistent with gains of 150,000 and 200,000 jobs a month. You
have to conclude the labor market is getting better.”
A portion of last week’s drop reflected fewer hurricane-related jobless claims in Florida, according to a Labor Department
official.
Economists forecast claims to fall to 340,000, according to
the median of 42 forecasts in a Bloomberg News survey, from a
previously reported 350,000. Estimates ranged from 330,000 to
350,000.
Last week’s level of initial claims is within the 330,000 to
350,000 range many economists consider consistent with the
creation of 150,000 jobs a month. That number is needed to keep
pace with population growth, according to the Federal Reserve.
“The labor market situation is strikingly similar to that of
the turn of the year, when economic growth was robust but job
gains were puzzlingly sub-par,” said Stephen Stanley, chief
economist at RBS Greenwich Capital Markets in Greenwich,
Conn. “We believe firmly that employment will follow
activity rather than vice versa.”
A separate report released earlier Thursday showed job postings
on the Internet remain robust. The Monster Employment Index, which
measures demand for employees based on online recruiting, held in
October at the highest level since its inception last year. The
gauge held at 114 for a second month, which is the highest since
the start of the index in October 2003, according to Monster
Worldwide Inc., the New York-based operator of the biggest
Internet job service. Online demand for workers over the last year
rose in all but one of the 23 occupations surveyed.
Bloomberg News
