Fewer Americans than projected filed applications for unemployment benefits last week, an indication companies are holding on to workers even as winter weather threatens to slow the world’s largest economy.
Unemployment claims declined by 26,000 to 323,000in the week that ended Saturday, fewer than any economist forecast in a Bloomberg survey and the least since the end of November, the Labor Department said. A Labor Department spokesman said the recent fluctuation coincides with states most affected by winter storms.
Fewer dismissals could set the stage for more robust hiring, in turn spurring consumers to feel more confident and giving them the means to spend more. That would help the economy pick up after a weather-induced slowdown in gauges from housing starts to retail sales early in the year.
“The overall trend here is positive and consistent with a gradually improving job market,” said Gennadiy Goldberg, a U.S. strategist at TD Securities USA LLC in New York. “We have stemmed the bleeding in layoffs, what remains is to add jobs.”
The median forecast of 51 economists surveyed by Bloomberg called for 336,000 claims. Estimates ranged from 325,000 to 350,000. The prior week’s claims were revised up to 349,000 from an initial reading of 348,000. The Labor Department said no states were estimated last week.
Thursday’s claims data showed the four-week average, a less-volatile measure than the weekly figure, decreased to 336,500 from338,500 the week before.
Frigid temperatures and heavy snow in the Northeast and Midwest have weighed on recent economic data. A report from the Commerce Department last month showed retail sales declined in January by the most since June 2012, falling 0.4 percent after a 0.1 percent drop in December.
Housing starts dropped 16 percent in January from the prior month, data on Feb. 19showed.
The economy added 146,000 jobs in February, based on the median estimate in a Bloomberg survey of economists, after Labor Department data showed that the U.S. added 113,000 positions for January, missing the median projection of 180,000. The Labor Department is scheduled to release February figures today.
The number of people continuing to receive unemployment benefits decreased by 8,000 to 2.91 million in the week ended Feb. 22, the fewest this year, Thursday’s report showed.
Thirty-six states and territories reported a drop in claims, while 17 reported an increase.
The unemployment rate among people eligible for benefits held at 2.2 percent. Both pieces of data are also reported with a one-week lag.
Initial unemployment claims reflect weekly firings and typically wane before employment growth picks up.
General Dynamics, a Falls Church, Va-based defense company, is still letting go workers.
The company will eliminate 1,195 call center positions in Houston, with most jobs ending by April 25, it said in a February letter to the Texas Workforce Commission.
Other companies are expanding to help them draw customers. ZipRealty Inc., an Emeryville, Calif.-based residential real estate brokerage, is among them.
“We’re increasing our transaction capacity and production pipeline by hiring new agents in the cities we serve,” Lanny Baker, president and chief executive officer, said in a March 3 call. “Our growing agent ranks and lead volume gains in 2013 are expected to contribute the transaction volume this year.”
Business, Pages 27 on 03/07/2014