March 11 (Bloomberg) -- The number of Americans filing first-time claims for jobless benefits fell for a second week to a level that indicates companies are nearing the end of payroll reductions as the economy recovers.
First-time jobless applications dropped by 6,000 to 462,000 in the week ended March 6, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance increased, while those getting extended benefits fell.
Companies are cutting fewer jobs as manufacturing improves and the economy recovers from the deepest recession since the 1930s. An increase in payrolls is needed for an additional boost to consumer spending that accounts for about 70 percent of the economy.
“The magnitude of the job losses has progressively diminished over the past year,” Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. “If this trend continues, the job losses should end in the next month.”
Economists forecast weekly claims would fall to 460,000, from a previously estimated 469,000 for the week ended Feb. 27, according to the median of 45 projections in a Bloomberg News survey. Estimates ranged from 440,000 to 480,000.
The four-week moving average of claims, a less volatile measure than the weekly figures, increased to 475,500 last week from 470,500 the prior week, today’s report showed.
Continuing claims increased by 37,000 to 4.56 million in the week ended Feb. 27. The prior week’s 4.52 million was the fewest since January 2009. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.
Extended Benefits
Today’s report showed the number of people who’ve used up their traditional benefits and are now collecting extended payments decreased by about 174,830 to 5.69 million in the week ended Feb. 20.
The Senate yesterday approved a $138 billion measure that would extend unemployment benefits and provide additional aid to states in the second major effort this year by lawmakers to aid the economy.
The vote sends the bill to the House. Increased unemployment benefits are one of the best ways of providing short-term stimulus to the economy because cash-strapped Americans are likely to spend any aid, according to the Congressional Budget Office.
The bill approved yesterday would extend until Dec. 31 expiring provisions in the law that offer as many as 99 weeks of unemployment checks.
The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3.5 percent in the week ended Feb. 27. Thirty-one states and territories had an increase in claims for that same week, while 22 had a decrease.
Jobless Rate
Unemployment in the U.S. held at 9.7 percent in February and payrolls declined by 36,000, Labor Department figures showed March 5. Both figures were lower than economists had forecast.
Among companies adding workers is Accenture Plc, the world’s second-largest technology-services provider, which plans to boost payrolls by as much as 9,000 in the U.S. by the end of August.
“We are seeing a very broad uplift globally” in demand, John Campagnino, director of worldwide recruiting, said in a March 3 interview. He said the trend “brings us right back to the pre-recession levels.”
Ford Motor Co. said Feb. 26 it will fill positions being created at a Cleveland engine plant with workers laid off elsewhere.
Some companies continue to cut jobs. American Airlines, the world’s second-largest carrier, said it would eliminate jobs of 230 baggage handlers, ramp workers and cargo employees nationwide. The reductions at the unit of AMR Corp. will begin March 13.
