LITTLE ROCK — Weekly unemployment benefit applications jumped 13,000 to a seasonally adjusted 380,000, the Labor Department said Thursday, suggesting that the job market’s recovery remains slow.
The previous week’s figures were also revised higher. The four-week average, a less volatile gauge, rose to 368,500.
The increase also likely reflects some seasonal volatility because applications for unemployment aid frequently rise around Easter. Many school employees are temporarily laid off during spring breaks and can file for benefits.
In separate reports released Thursday, the Labor Department said wholesale inflation remained unchanged in March and the Commerce Department said the trade deficit fell in February to its lowest point in four months.
After steadily declining since last fall, unemployment benefit applications have leveled off in recent weeks. The four-week average is essentially unchanged over the past two months.
The increase “doesn’t ring any alarm bells,” said Ryan Sweet, an economist at Moody’s Analytics. “Applications can be choppy.”
But the trend bears watching, he said.
“If claims continue to climb, it would be strong evidence that the job market is weakening,” Sweet added.
When applications fall below 375,000, it generally suggests that hiring will be strong enough to lower the unemployment rate.
The figures come after a disappointing employment report last week that showed that employers added only 120,000 jobs in March, half the average pace in the preceding three months. But many economists downplayed the weak March figures, noting that a warmer winter may have led to some earlier hiring in January and February.
The economy has added an average of 212,000 jobs per month in the January-March quarter, well ahead of last year’s pace. And the unemployment rate has fallen from 9.1 percent in August to 8.2 percent in March. One factor is that some people have given up looking for work. People who are out of work but not looking for jobs aren’t counted as unemployed.
Moody’s Analytics expects job gains to average about 175,000 a month for the rest of the year and for the unemployment rate to fall just below 8 percent by year’s end.
Economists note that applications for unemployment aid are at a much lower level than they were last year, suggesting that March’s weak numbers might have been a temporary lull.
Wholesale prices were flat in March after a drop in energy prices offset rising costs for food and new pickups. The figures suggest that modest growth isn’t spurring inflation.
The producer price index, which measures prices before they reach the consumer, was unchanged. Excluding volatile food and gas costs, the so-called core index rose 0.3 percent.
Wholesale gasoline prices fell 2 percent, according to the index, even though consumers and businesses paid higher prices for gasoline in March. That was largely because of seasonal factors that expected a bigger jump in prices.
The U.S. trade deficit fell in February to its lowest point in four months. American exports rose to an all-time high while imports dropped.
The narrower deficit could lead economists to upward revise their growth estimates for the January-March quarter.
The trade deficit decreased 12.4 percent to $46 billion in February, down from $52.5 billion in January.
Exports edged up 0.1 percent to a record $181.2 billion. U.S. businesses sold more goods in Europe, China and other parts of the world.
Imports dropped 2.7 percent to $227.2 billion, after hitting a record high in January. Oil imports fell, as did imports of foreign cars and machinery.
Business, Pages 25 on 04/13/2012