Applications for jobless claims in the United States increased for the first time in three weeks. It returned to levels before the holiday season and showed little change in the rate of firings. Unemployment benefits went up by 20,000 to 362,000 in the week that ended February 16 according to the report released by the Labor Department.
The average forecast made by 48 economists polled by Bloomberg was an increase to 355,000. The number of applications in three states as well as the District of Columbia was estimated due to the holiday-shortened week.
Companies have maintained the number of workers even with concerns regarding gasoline price increase and the tax increase that took effect in January. The pending spending cuts, or the so-called sequester, has threatened to slow down growth. It could mean slower hiring rate in the coming months.
Core measure that excludes more volatile energy and food costs went up 0.3 percent. This was more than the estimate made by analysts.
Previously owned homes as well as an index of leading economic indicators gained in January. The gauge of manufacturing in the Philadelphia area dropped in February.
The Standard & Poor’s 500-stock index dropped 0.4 percent to 1,505.27. The yield on the 10 year Treasury note fell to 1.97 percent from yesterday’s 2.01 percent.
Estimates made by economists for jobless claims ranged from 330,000 to 375,000. The Labor Department changed the past week’s number up to 342,000 from the initial report of 341,000.
California and Virginia states submitted estimates for the jobless claims last week because they didn’t have time to collect all the numbers due to the Presidents Day holiday last February 18. The Labor Department said that it submitted estimates for the nation’s capital as well as Hawaii.
