First-Time Jobless Claims in U.S. Decrease to Lowest Level in Nine Months
By Bob Willis - Dec 8, 2011 8:30 AM ET .
Fewer Americans than forecast filed applications for unemployment benefits last week, reflecting a rebound from the Thanksgiving holiday and fewer seasonal firings which may signal the labor market is on the mend.
Jobless claims dropped by 23,000 to 381,000 in the week ended Dec. 3, the fewest since February, Labor Department figures showed today in Washington. The median forecast of 47 economists in a Bloomberg News survey called for a drop to 395,000. The number of people on unemployment benefit rolls and those getting extended payments also decreased.
Companies are firing fewer workers yet may be reluctant to ramp up staff until demand picks up and there’s more clarity on tax breaks due to expire at year-end. While the jobless rate last month unexpectedly fell to 8.6 percent, the lowest in more than two years, faster job growth is needed to push the rate lower and spur consumer spending.
“We are likely to see modest growth in hiring in coming months,” Stephen Stanley, chief economist for Pierpont Securities LLC in Stamford, Connecticut, said before the report. “That’s why we’ll see a gentle acceleration in jobs. Businesses won’t let loose on hiring until they see robust growth in consumer spending.”
Jobless benefits applications were projected to decrease from 402,000 initially reported for the prior week, according to the survey median. Estimates ranged from 375,000 to 410,000. The Labor Department revised the prior week’s figure, which included the Thanksgiving Day holiday, up to 404,000.
more at Bloomberg.com
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