Applications for U.S. unemployment benefits fell last week to a level that’s consistent with little improvement in the labor market. Initial jobless claims declined by 23,000 to 452,000 in the week ended Oct. 15, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance fell, while those getting extended payments rose. The pace of firings has persisted since the start of the year, indicating it will take longer to reduce an unemployment rate that’s near a 26-year high. A Federal Reserve report yesterday showed the economy is growing at a “modest pace” with companies still hesitant to hire, a reason central bankers may ease monetary policy. “Initial claims at this level is still consistent with a sluggish labor market,” said Jonathan Basile, an economist at Credit Suisse in New York. “We’ve been stuck in a range for most of the year. It doesn’t tell you that the layoff trend has improved dramatically this year.” Economists forecast claims would fall to 455,000 from a previously reported 462,000 the prior week, according to the median of 47 projections in a Bloomberg News survey. Estimates ranged from 430,000 to 465,000. Stocks Higher Stock-index futures maintained gains after the report and Treasury securities fell. Futures on the Standard & Poor’s 500 Index rose 0.4 percent to 1,179.3 at 8:36 a.m. in New York. The yield on the 10-year Treasury note, which moves inversely to price, increased to 2.49 percent from 2.48 percent late yesterday. A Labor Department spokesman said several states had estimated claims for the prior week because they weren’t able to provide actual figures. The final tallies turned out to be higher than what they had initially provided to the Labor Department. The four-week moving average of claims, a less volatile measure, fell to 458,000 from 462,250. The number of people continuing to receive jobless benefits fell by 9,000 in the week ended Oct. 9 to 4.44 million, the lowest since June 26. The continuing claims figure does not include the number of Americans receiving extended and emergency benefits under federal programs. Those who’ve used up their traditional benefits and are now collecting emergency and extended payments increased by about 279,000 to 5.07 million in the week ended Oct. 2. Unemployment Rate The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3.5 percent in the week ended Oct. 9. Fifty-one states and territories reported an increase in claims, while two reported a decline. These data are reported with a one-week lag. Companies in September added 64,000 workers, while total payrolls that include governments fell a larger-than-forecast 95,000, Labor Department figures showed Oct. 8. The drop in U.S. payrolls in September largely reflected local governments firing educators and other workers to make up for declining tax revenue. Struggles to keep state and local government budgets balanced likely will continue to weigh on job growth and sustain the level of weekly jobless claims. Aon Corp. Private companies are still firing workers. Aon Corp., the world’s biggest insurance broker, plans to cut 1,500 to 1,800 jobs globally as it integrates businesses after the acquisition of consulting firm Hewitt Associates Inc., the Chicago-based firm said Oct. 14 in a regulatory filing. “There are going to be some redundancies as part of this” acquisition, Chief Executive Officer Gregory Case told analysts in a July conference call. Some firms are hiring. Delta Air Lines Inc. is adding 1,000 flight attendants, many of them to work on more profitable international routes, as global demand for travel improves. About 600 of the positions will be new hires and Delta has received 85,000 applications, Betsy Talton, a spokeswoman for the Atlanta-based company, said this week. The company first offered the jobs to attendants who were on furlough and 425 accepted, Chief Executive Officer Richard Anderson said in his weekly recorded message to employees. To contact the reporter on this story: Bob Willis in Washington at Bwillis@bloomberg.net To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Source