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Business Title: Jobless Claims in U.S. Fell Last Week as Job Market Improved Feb. 2 (Bloomberg) -- Claims for U.S. jobless benefits fell last week, a sign the labor market is improving. Applications for unemployment insurance payments dropped by 12,000 to 367,000 in the week ended Jan. 28, Labor Department figures showed today in Washington. The median forecast of 46 economists in a Bloomberg News survey projected 371,000. Companies are slowing the pace of firing as the world's largest economy picks up, a necessary step toward bigger gains in employment. Economists forecast a Labor Department report tomorrow may show employers boosted payrolls in January and the jobless rate held at an almost three-year low. "The shift lower in claims looks to be sustainable," Eric Green, chief market economist at TD Securities Inc. in New York, said before the report. "The lower claims you have, the higher job growth you'll get." Jobless claims were projected to decrease from 377,000 initially reported for the prior week, according to the Bloomberg survey. Estimates ranged from 360,000 to 384,000. The Labor Department revised the previous week's figure up to 379,000. Another Labor Department report today showed worker productivity rose at a slower pace in the fourth quarter than in the prior three months, showing companies have squeezed as much efficiency as possible out of their existing workforces. The measure of worker output per hour increased at a 0.7 percent annual rate, following a 1.9 percent gain in the prior three-month period. Expenses per employee climbed at a 1.2 percent rate after falling 2.1 percent in the third quarter. Lower Average The four-week moving average for jobless claims, a less volatile measure than the weekly figures, fell to 375,750 last week from 377,750. It was the second-lowest average since 2008, after a 374,000 reading in the last week of December. A Labor Department spokesman said there was nothing unusual with last week's data and no states' data was estimated. The number of people continuing to receive jobless benefits plunged by 130,000 in the week ended Jan. 21 to 3.44 million, the fewest since September 2008. 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 increased by about 43,100 to 3.5 million in the week ended Jan. 14. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, fell to 2.7 percent from 2.8 percent, today's report showed. State Totals Fifty states and territories reported a decrease in claims, while three reported an increase. These data are reported with a one-week lag. Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates. Employment climbed by 145,000 workers in January after rising by 200,000 the prior month, and the jobless rate held at 8.5 percent, the lowest level since Feb. 2009, Labor Department figures may show tomorrow, according to the median estimate of economists surveyed by Bloomberg News. Concern about the high number of jobless Americans is one reason why the Federal Reserve on Jan. 25 said it would keep its benchmark lending rate near zero "at least" until late 2014 from a prior target of mid-2013. "While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated," Fed policy makers said after their meeting. Staff Cuts J.C. Penney Co., the fourth-largest U.S. department store chain, is cutting seasonal employees and some full-time jobs as part of a plan to overhaul the retailer. AMR Corp.'s American Airlines said it will eliminate 13,000 jobs under a plan to cut operating costs by $2 billion and boost revenue by $1 billion a year as the company restructures in bankruptcy. The job cuts will total about 18 percent of American's 73,800 employees, Chief Executive Officer Tom Horton told labor leaders in a meeting this week. "There is no avoiding the fact that the cost reductions will be deep," Horton said. "And there is no sugarcoating the effect on our people." --With assistance from Chris Middleton in Washington. Editor: Carlos Torres
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