Fewer Americans filed for unemployment benefits last week as labor-market tightening compelled employers to hold on to seasonal hires.
Jobless claims decreased by 4,000 to 294,000 in the week ended Jan. 3, the Labor Department said today in Washington. The median forecast of 45 economists surveyed by Bloomberg called for a decline to 290,000.
Employers finding it harder to fill vacancies are probably holding on to workers more workers hired during the holidays as the economy expands and consumers spending picks up. The need to keep staff may mean companies will soon need to also boost wages.
“Companies won’t lay off as many seasonal hires as they normally do,” said Michelle Girard, chief U.S. economist at RBS Securities Inc. in Stamford, Connecticut. “If it is indeed the case that it’s so hard to find workers, they may keep more of them, post-holidays.”
Estimates in the Bloomberg survey ranged from 285,000 to 300,000. The prior weeks’ claims were unrevised at 298,000.
There was nothing unusual in the claims data and no states were estimated, a Labor Department spokesman said as the report was released to the press.
The four-week average of claims, a less-volatile measure than the weekly figure, declined to 290,500 from 290,750 the week before.
Continuing Claims
The number of people continuing to receive jobless benefits climbed by 101,000 to 2.45 million in the week ended Dec. 27. The unemployment rate among people eligible for benefits held at 1.8 percent. These data are reported with a one-week lag.
A report yesterday showed companies added more workers than forecast in December, as the pickup in household spending drove economic expansion and boosted corporate headcounts. ADP Research Institute recorded a 241,000 increase in employment, the biggest since June.