Jobless Claims Decline to Lowest Level Since November
usaghumphreys/Flickr The number of Americans filing for unemployment benefits unexpectedly declined last week to a three-month low, signaling durability in the labor market.
Initial jobless claims dropped by 7,000 to 262,000 in the week ended Feb. 13, the lowest since Nov. 21, a report from the Labor Department showed on Feb. 18. Last week coincided with the period that the government surveys businesses and households to calculate payrolls and the jobless rate for February.
The labor market has exhibited persistent strength despite softer foreign sales, a sign domestic demand is helping the U.S. weather a global slowdown. More hiring and fewer firings that lead to enhanced feelings of job security have the potential to encourage an acceleration in consumer spending.
“Even though it gives us only one side of the labor-market ledger, jobless claims are effectively a gauge on overall business sentiment,” said Millan Mulraine, deputy head of U.S. research and strategy at TD Securities USA in New York. The report is “a good indication that businesses are more inclined to hold on to what they have and add to that, as opposed to reduce their payrolls.”
The median forecast in a Bloomberg News survey called for 275,000 claims after 269,000 a week earlier. Estimates ranged from 255,000 to 285,000.
While there was nothing unusual in the data, claims were estimated for Pennsylvania, Virginia and Puerto Rico, according to the Labor Department.
An agency spokesman said officials in Pennsylvania had issues with their computer system that tabulates the number of applications, while Virginia was delayed in submitting its claims. On an unadjusted basis, Pennsylvania’s filings fell an estimated 3,899 last week, the largest drop of any state or territory.
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|By Victoria Stilwell |
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