Other data from the Commerce Department showed the economy expanded at a 1.3 percent annual rate in the second quarter, less than the 1.7 percent previous estimated, as consumer spending climbed at the slowest pace in a year.
The four-week moving average for jobless claims, a less- volatile measure, dropped to 374,000 from 378,500.
The number of people continuing to collect jobless benefits fell by 4,000 to 3.27 million in the week ended Sept. 15. The continuing claims figure does not include the number of workers receiving extended benefits under federal programs.
Those who’ve used up their traditional benefits and are now collecting emergency and extended payments decreased by about 1,900 to 2.16 million in the week ended Sept. 8.
The unemployment rate among people eligible for benefits held at 2.6 percent in the week ended Sept. 15. Thirty-seven states and territories reported an increase in claims, while 16 reported a decrease.
Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates.
Hiring stumbled last month, with payrolls rising by 96,000 workers after a revised 141,000 gain in July, Labor Department figures showed Sept. 7. The jobless rate fell to 8.1 percent in August from 8.3 percent as more Americans left the labor force.
Employment prospects may be lifted, albeit temporarily, as businesses boost headcounts ahead of the year-end holidays. Toys “R” Us Inc., the world’s largest toy retailer, said it will hire 45,000 temporary staff in the Christmas period at both its stores and online distribution centers in the U.S., up from 40,000 last year. Wal-Mart Stores Inc. said will hire more than 50,000 temporary workers in its U.S. stores.
Economists project payrolls expanded by 120,000 workers in September, according to the median estimate in a Bloomberg survey. The Labor Department will release the figures on Oct. 5.
Weak demand is still restraining job growth. Siemens AG said will cut 615 jobs at U.S. factories producing windmills in response to “a significant drop in new orders,” according to a message to employees obtained by Bloomberg. Alpha Natural Resources Inc., the second-largest U.S. coal producer, said last week it will close eight mines, eliminating 1,200 jobs.
The pace of labor market progress persuaded the Federal Reserve to announce further monetary accommodation this month. The central bank said it will expand its holdings of long-term securities by purchasing $40 billion of mortgage debt a month until the labor market improves significantly.
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