Job claims up a little

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Jan. 10, 2013, 9:21 a.m. EST

Jobless claims in U.S. rise 4,000 to 371,000

Little change in hiring trends indicated by Labor’s latest report

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By Jeffry Bartash, MarketWatch

WASHINGTON (MarketWatch) — New applications for jobless benefits rose slightly in the first week of 2013, data showed Thursday, but the level of claims stands little changed over the past few months and is consistent with a modestly improving U.S. labor market.

Initial jobless claims climbed by 4,000 to a seasonally adjusted 371,000 in the week ended Jan. 5, the Labor Department said. That’s the highest level in one month.
Economists surveyed by MarketWatch had forecast claims to fall to 365,000. Claims from two weeks ago were revised down to 367,000 from an initial read of 372,000.

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The one-month average of claims, typically a more accurate number in that it smooths out week-to-week volatility, increased by 6,750 to 365,750.
Claims usually zig-zag in December and early January because of the holiday season; economists often discount the data until the end of the month. Yet there’s been little change in the overall level of claims since last summer, echoing other employment data.
Indeed, U.S. job creation has been remarkably stable over the past two years. The economy has added an average of about 153,000 net jobs a month since the start of 2011.
Looking ahead, economists don’t expect a big pickup in hiring. Democrats and Republicans are headed toward another showdown in February, this time over the U.S. debt ceiling, and sharp cuts in defense and domestic spending could also kick in unless Washington lawmakers alter current law.

Reuters

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People wait in line to enter a job fair in New York August 15, 2011.

What’s more, payroll taxes just went up on millions of Americans, potentially crimping consumer spending and reducing demand for goods and services, though lower gasoline prices might offset some of the tax drag.
In the week ended Dec. 29, meanwhile, continuing jobless claims sank by 127,000 to a seasonally adjusted 3.1 million, marking the biggest decline in one year. Yet the sharp drop likely owed to seasonal quirks that often arise at the end of the year.
Continuing claims reflect the number of people who already receive regular unemployment benefits, which last about 26 weeks in most states.
Some 5.36 million people received extended or other government benefits in the week ended Dec. 22, down 51,335 from the prior week. The numbers are reported with a two-week lag.