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Business Title: Jobless Claims in U.S. Fell 29,000 Last Week to 469,000 - Geez, MAYBE it WAS the Weather... March 4 (Bloomberg) -- Claims for U.S. jobless benefits dropped last week from a three-month high, pointing to an improvement in the labor market that is slow to develop. Initial jobless applications fell by 29,000 to 469,000 in the week ended Feb. 27, in line with the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance decreased to the lowest level in a year, while those receiving extended benefits climbed. Some companies are still trimming payrolls to contain costs amid weak sales as the U.S. emerges from the worst recession since the 1930s. An unemployment rate that’s forecast to average 9.8 percent this year may restrain consumer spending, which accounts for about 70 percent of the economy. “The pattern of claims in recent weeks is consistent with little or no job growth,” Aaron Smith, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. Nonetheless, he said, “we remain confident that payrolls will soon turn positive and that the transition toward a lasting expansion is under way.” Economists forecast weekly claims would fall to 470,000, from a previously estimated 496,000 for the week ended Feb. 20, according to the median of 42 projections in a Bloomberg News survey. Estimates ranged from 440,000 to 515,000. Productivity Surging Another Labor Department report today showed the productivity of U.S. workers kept surging in the fourth quarter as companies squeezed more work out of employees to boost earnings. A measure of employee output per hour rose at a 6.9 percent annual rate, capping the biggest one-year gain since 2002. Labor costs dropped at a 5.9 percent pace, more than anticipated, and fell 1.7 percent for all of 2009, the biggest drop since records began six decades ago. The four-week moving average of claims, a less volatile measure than the weekly figure, decreased to 470,750 last week from 474,250 the prior week, the report showed. Continuing claims decreased by 134,000 to 4.5 million in the week ended Feb. 20, the fewest since January 2009. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. Today’s report showed the number of people who’ve used up their traditional benefits and are now collecting extended payments increased by about 198,000 to 5.87 million in the week ended Feb. 13. Joblessness Falls The unemployment rate among people eligible for benefits, which tends to track the jobless rate, decreased to 3.5 percent in the week ended Feb. 20 from 3.6 percent the prior week, today’s report showed. Sixteen states and territories had an increase in claims for that same week, while 37 had a decrease. Unemployment in the U.S. dropped to 9.7 percent in January, while payrolls declined by 20,000, Labor Department figures showed last month. A government report tomorrow is forecast to show the U.S. lost 65,000 jobs in February and the unemployment rate increased to 9.8 percent, according to the survey median. Some companies continue to cut staff. International Business Machines Corp., the world’s largest computer-services provider, fired about 2,400 workers, mostly in the U.S., according to an employee advocacy group. The cuts this week occurred around the country and across several divisions, said Lee Conrad, national director of Alliance@IBM, which represents some employees Other businesses are recalling workers. General Motors Co. may fill most of the 5,500 jobs created by its $1.4 billion retooling of 18 U.S. factories with laid-off workers, Diana Tremblay, the automaker’s manufacturing and labor chief, said in an interview Feb. 23. The company’s 5,000 to 6,000 workers on indefinite layoff have first rights to any openings from the factory upgrades, including a third shift in Lordstown, Ohio, announced last week.
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