Jobless claims in U.S. little changed as labor market stable

Jobless Rate

The unemployment rate among people eligible for benefits held at 2.6 percent, today’s report showed.

Sixteen states and territories reported a decline in claims, while 36 reported an increase. These data are reported with a one-week lag.

Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates.

Google Inc. and FedEx Corp. are among companies planning to trim payrolls.

Mountain View, California-based Google will cut about 4,000 jobs at its Motorola Mobility Holdings Inc. unit, or 20 percent of the staff at the company it bought for about $12.5 billion, according to an Aug. 13 regulatory filing. About one-third of the reductions will be in the U.S. workforce.

FedEx, the world’s largest cargo airline, will offer voluntary buyouts to some workers under a pledge for “significant” cost reductions ahead of expected slower profit growth. Offers may not be made until FedEx’s fiscal fourth quarter starting in March, Shea Leordeanu, a spokeswoman for the Memphis, Tennessee-based company, said in an Aug. 13 interview with Bloomberg News.

Fed’s View

The Federal Open Market Committee pledged “additional accommodation as needed” on Aug. 1 in order to sustain the expansion. Policy makers next meet on Sept. 12-13.

Fed officials “will closely monitor incoming information on economic and financial developments” in order to “promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability,” it said in a statement. The group “expects economic growth to remain moderate over coming quarters and then to pick up very gradually.”

Bloomberg News

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