Claims Fall As Firms Slow Pace of Job Cuts
INITIAL jobless claims in the United States fell for a third straight week, a sign companies may be slowing the pace of job cuts.
The number of Americans filing first-time claims for unemployment benefits decreased by 10,000 to 425,000 in the week ended last Saturday, from a revised 435,000 the prior week. The number of people staying on rolls rose to 3.423 million, the highest since November 2003.
Companies are trimming staff and freezing hiring plans as demand softens, forcing workers to stay on government assistance. Rising unemployment heightens job-security concerns and contributes to a slowdown in consumer spending.
“The job situation still looks bleak to many,” Joel Naroff, president of Naroff Economic Advisors Inc in Pennsylvania, said before the report. “Falling home prices and job losses are still hanging over consumer spending, and it is unlikely to change in the near term.”
Economists had forecast claims would fall to 425,000 from a previously reported 432,000 in the prior week, according to the median of 41 projections in a Bloomberg News survey. The four-week moving average of initial claims, a less volatile measure than the weekly figure, dropped to 440,250 from 446,250, the report showed.
So far this year, weekly claims have averaged 375,400, compared with 321,000 for all of 2007.
The jump in claims that began in mid-July is due to the extension of jobless benefits under the spending bill signed by President George W. Bush in June.