May 13 (Bloomberg) -- The number of Americans filing claims for jobless benefits dropped for a fourth straight week, a sign that employers are retaining more workers as the economy expands.
Initial jobless claims fell by 4,000 to 444,000 in the week ended May 8, higher than the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance increased and those getting extended payments fell.
Employers seeing improved sales and profits have added workers to payrolls in each of the last four months, signaling greater confidence in the recovery. Unemployment may take time to retreat as the number of jobseekers entering the workforce exceeds available jobs.
“We’re still in the early stages of the labor-market recovery,” Joseph Brusuelas, chief economist at Brusuelas Analytics in Stamford, Connecticut, said before the report. “There is some risk that the unemployment rate will remain elevated for an extended period of time.”
Jobless claims were projected to drop to 440,000 from 444,000 initially reported for the prior week, according to the median forecast of 51 economists in a Bloomberg survey. Estimates ranged from 425,000 to 450,000. The level of claims is the lowest in six weeks.
The four-week moving average of initial claims, a less volatile measure than the weekly figures, dropped to 450,500 last week from 459,500, today’s report showed.
The number of people continuing to receive jobless benefits climbed by 12,000 in the week ended May 1 to 4.63 million. They were forecast to drop to 4.59 million.
The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.
Extended, Emergency Benefits
Those who’ve used up their traditional benefits and are now collecting emergency and extended payments decreased by about 200,000 to 5.36 million in the week ended April 24.
The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3.6 percent in the week ended May 1.
Thirty-six states and territories reported a decrease in claims, while 17 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.
Payroll Growth
Payrolls increased by 290,000 in April, the most in four years, according to figures from the Labor Department last week. Unemployment climbed to 9.9 percent from 9.7 percent as thousands of jobseekers entered the workforce.
Some companies are adding staff as sales increase. General Electric Co., the world’s largest maker of jet engines, power- generation equipment and locomotives, increased the number of jobs it plans to add in Michigan to more than 1,300 with the creation of 220 aerospace manufacturing positions, the Fairfield, Connecticut-based company said last week.
Other companies are still eliminating workers. Dean Foods Co., the biggest U.S. dairy processor, this week said it plans to cut 350 to 400 more jobs this year. The Dallas-based company has already fired 150 staff members this year to rein in costs.
