Applications for unemployment benefits in the U.S. rose for the first time in three weeks, returning to levels seen prior to the holiday period and indicating little change in the pace of firings.
Jobless claims increased by 20,000 to 362,000 in the week ended Feb. 16, the Labor Department reported today in Washington. The median forecast of 48 economists surveyed by Bloomberg called for an increase to 355,000. The number of applications in three states and the District of Columbia was estimated because of the holiday-shortened week, a Labor Department spokesman said as the data was released.
Companies are maintaining their staffing levels even amid concern that rising gasoline prices and a January tax increase will damp consumer spending. Looming cuts in government spending also threaten to slow growth, a sign that hiring may be limited in coming months.
“It’s a stable level of claims,” said Yelena Shulyatyeva, an economist at BNP Paribas in New York, which predicted claims would rise to 365,000. “The main issue is the pace of hiring is not picking up. Businesses feel very uncertain about the outlook.”
The cost of living was little changed in January for a second month as a drop in energy costs offset gains in clothing, hotel rates and airline fares, another report from the Labor Department showed today. Over the past 12 months, the consumer- price index increased 1.6%, the smallest year-over-year gain since July.
The so-called core measure, which excludes more volatile food and energy costs, increased 0.3%, more than forecast.
Other data today showed sales of previously owned homes and an index of leading economic indicators both increased in January, while a gauge of manufacturing in the Philadelphia region declined in February.
The Standard & Poor’s 500 Index March declined 0.4 percent to 1,505.27 at 10:44 a.m. in New York. The yield on the 10-year Treasury note slid to 1.97% from 2.01%.
Economists’ estimates for jobless claims in the Bloomberg survey ranged from 330,000 to 375,000. The Labor Department revised the previous week’s figure up to 342,000 from a previously reported 341,000.
Officials in California and Virginia submitted estimates for their claims last week because they didn’t have time to compile all the numbers as a result of the Presidents Day holiday on Feb. 18. The Labor Department submitted estimates on behalf of Hawaii and the nation’s capital.
The less-volatile four-week average climbed to 360,750 from 352,750. The average at the end of October, before the typical swings related to the year-end holidays set in, was 367,250.
Last week corresponded to the period the Labor Department will survey businesses to calculate the payroll data for February. The average last week was little changed from January’s 360,000 for the comparable period.
The number of people continuing to receive jobless benefits rose by 11,000 to 3.15 million in the week ended Feb. 9. The continuing claims figure doesn’t include Americans receiving extended unemployment benefits under federal programs.
Those people collecting emergency and extended payments plunged by about 233,000 to 1.85 million in the week ended Feb. 2.
The unemployment rate among Americans eligible for benefits held at 2.4% in the week ended Feb. 9, today’s report showed.
Eleven states and territories reported an increase in claims, while 42 reported a decrease. 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.
Bob Evans Farms Inc. implemented a hiring freeze in May and is feeling the effects of higher taxes and gas prices. The Columbus, Ohio-based chain is rehabbing its family restaurants, expanding takeout service and hawking its low-cost meals to boost business.
“There’s not much we can do about the economy,” Chairman and Chief Executive Officer Steve Davis said on a Feb. 20 earnings call. “Even though we saw some hiccups, we’re still encouraged on what we’re able to control.”