(Bloomberg News) More Americans than forecast filed applications for unemployment benefits last week, indicating little progress in the labor market.
Jobless claims fell by 1,000 to 428,000 in the week ended June 25, Labor Department figures showed today in Washington. The median forecast of economists in a Bloomberg News survey called for a drop to 420,000. The number of people on unemployment benefit rolls and those getting extended payments declined.
Weaker demand in recent months has prompted some companies to trim their workforces, adding to concern a cooling labor market will further restrain consumer spending that accounts for about 70 percent of the economy. Federal Reserve officials last week retained record monetary stimulus to help the economy withstand a "temporary" slowdown in growth.
"The labor market is not making any material improvement," said John Herrmann, senior fixed-income strategist at State Street Global Markets LLC in Boston, who projected 429,000 claims in the latest week. "Consumer spending will be more constrained."
Estimates in the Bloomberg survey of 43 economists ranged from 410,000 to 435,000. Stock-index futures maintained gains after the report. The contract on the Standard & Poor's 500 Index expiring in September rose 0.2 percent to 1,307 at 8:32 a.m. in New York.
Today's data showed the four-week moving average, a less volatile measure than the weekly figures, was little changed at 426,750 last week after 426,250 the previous week.
Continuing Claims
The number of people continuing to receive jobless benefits dropped by 12,000 in the week ended June 18 to 3.7 million. They were forecast to decrease to 3.69 million.
The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.
Those who've used up their traditional benefits and are now collecting emergency and extended payments decreased by about 27,000 to 3.93 million in the week ended June 11.
The unemployment rate among people eligible for benefits, which tends to track the jobless rate, fell to 2.9 percent from 3 percent in the prior week, today's report showed.