Jobless Claims in U.S. Point to Improving Labor Market
By Alex Kowalski - Feb 23, 2012 8:42 AM ET
Initial Jobless Claims in U.S. Held Last Week at 351,000
The number of Americans filing first-time claims for unemployment insurance payments last week held at a four-year low, more evidence the labor market is improving.
Applications for jobless benefits were unchanged in the week ended Feb. 18 at 351,000, the fewest since March 2008, Labor Department figures showed today. The median projection in a Bloomberg News survey called for 355,000 claims, marking the fourth straight week that the figures have been better than forecast. The number of people on unemployment benefit rolls dropped to the lowest level since August 2008.
Fewer headcount reductions show companies may be growing more optimistic about the outlook for the world’s biggest economy. The recent drop in jobless claims sets the stage for bigger gains in hiring, which would bolster consumer confidence and drive spending.
“The strength we’ve had in the last few months is continuing,” said Guy Berger, an economist at RBS Securities Inc. in Stamford, Connecticut, who forecast 350,000 claims. “Barring any surprises, February looks like another good month for payroll growth.”
Stock-index futures held gains after the figures, with the Standard & Poor’s 500 Index climbing 0.1 percent to 1,357.3 at 8:42 a.m. in New York.
Estimates for first-time claims ranged from 330,000 to 370,000 in the Bloomberg News survey of 47 economists. The Labor Department initially reported the prior week’s applications at 348,000.
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