Applications for unemployment benefits fell slightly in the second week of February but the level of claims appeared to signal little improvement in the U.S. labor market.
Initial jobless claims dropped by 3,000 to a seasonally adjusted 336,000 in the seven days ended Feb. 15, the Labor Department said Thursday.
Economists polled by MarketWatch had expected claims to total 335,000. The number of people seeking benefits each week is seen as a good gauge of how many layoffs are taking place in the economy.
The average of new claims over the past month, usually a more reliable gauge than the erratic weekly number, rose by 1,750 to 338,500. That’s the highest amount in six weeks, but just slightly above the six-month average.
Claims appear to have fallen into a holding pattern after a steady decline in 2013. Unusually harsh weather early in the new year may have stifled new hiring, and it’s also sidelined some workers in certain industries such as construction and manufacturing.
What’s unclear is whether the weather-induced weakness in the labor market is temporary or if it is masking a slowdown in job creation. The last two monthly employment reports have been soft and economists aren’t expecting much improvement in February.
Source:Marketwatch
