By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — Applications for unemployment compensation rose slightly last week, indicating little change in a weak U.S. jobs market in which net hiring remains near a standstill.
Jobless claims rose to 414,000 from 412,000, the Labor Department said Thursday. Economists surveyed by MarketWatch forecast claims to rise to a seasonally adjusted 411,000 in the week ended Sept. 3.
Initial claims from two weeks ago were revised up from an original reading of 409,000.
A government official said last week’s hurricane in the Northeast appeared to have little effect on claims. Yet the Labor Day holiday did result in paperwork delays at four states – California, Virginia, Washington, DC and Hawaii – whose numbers had to be estimated.
The average of new claims over the past four weeks, meanwhile, rose by 3,750 to 414,750, the highest level since mid-July. The monthly average is seen as a more accurate gauge of labor trends because it smooths out volatility in the week-to-week data.
The level of weekly claims, which have hovered above 400,000 almost the entire year, is consistent with a slow pace of hiring. In a strong economy, applications for jobless benefits typically fall well below that level for an extended period.
Nor is there any sign hiring will accelerate soon. A raft of data indicates businesses are more hesitant to hire and that was reflected in last Friday’s monthly employment report showing zero job growth in August. The unemployment rate remained unchanged at 9.1%.
The lack of job growth has become the most pressing political matter in Washington in the run-up to the 2012 presidential election. President Barack Obama is expected to unveil more proposals Thursday night in a rare midyear address to Congress, but Democrats and Republicans are sharply divided over what actions to take.
As a result of persistent unemployment, the government is providing extended benefits to millions of Americans.
About 7.17 million people received some kind of state or federal benefit in the week of Aug. 20, down 167,009 from the prior week. Total claims are reported with a two-week lag.
In addition, the number of Americans who continue to receive benefits through regular state unemployment programs fell by 30,000 to 3.72 million in the week ended Aug 27. Continuing claims are reported with a one-week lag.
Jeffry Bartash is a reporter for MarketWatch in Washington.
