Oct. 1 (Bloomberg) -- The number of Americans filing first-time claims for jobless benefits rose more than forecast last week, a sign companies are still cutting workers as the economy pulls out of the recession. Applications rose by 17,000 to 551,000 in the week ended Sept. 26, from a revised 534,000 the week before, Labor Department data showed today in Washington. The total number of people collecting unemployment insurance fell in the prior week to 6.09 million, the least since April. Monthly job losses have slowed as government stimulus measures spur production and consumer demand, helping to end the worst slump since the 1930s. The Labor Department may report tomorrow that the economy lost the fewest jobs in more than a year last month, while the unemployment rate kept rising, indicating a rebound in hiring will be gradual. “Employers are clearly continuing to trim their workforces, albeit at a slower rate than earlier in the year,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report. “We take encouragement that the trend is down, but believe it will merely translate into lessening gains in unemployment.” Economists forecast weekly claims would rise to 535,000 from a previously reported 530,000, according to the median of 41 projections in a Bloomberg News survey. Estimates ranged from 519,000 to 555,000. Continuing claims were forecast to rise to 6.17 million. 4-Week Average The report showed the four-week moving average of initial applications, a less volatile measure, fell to 548,500 last week from 554,250. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, was unchanged at 4.6 percent in the week ended Sept. 19. Forty-one states and territories reported an increase in claims, while 12 reported a decrease. These data are reported with a one-week lag. Initial jobless claims reflect weekly firings and tend to rise as job growth -- measured by the monthly non-farm payrolls report -- slows. The continuing claims data don’t the number of Americans receiving extended benefits under federal and state programs, which rose 2.9 percent to 3.7 million in the week ended Sept. 12 from the prior week, according to the Labor Department. The Senate is due to vote on another emergency extension for the states hardest hit by the recession, after the House voted last month to extend those benefits. Payrolls Report The Labor Department may say tomorrow that job losses in September totaled 175,000, according to economists surveyed by Bloomberg, while the unemployment rate rose to 9.8 percent, the highest since 1983. The economy has lost 6.9 million jobs since the recession started in December 2007, the most of any downturn since the Great Depression. The 216,000 drop in payrolls reported for August, meanwhile, was the smallest in a year and lower than economists projected. General Motors Co. said this week it will close Saturn, the brand created 24 years ago to emulate successful Japanese carmakers, after Penske Automotive Group Inc. broke off discussions to buy the unit. Saturn dealers will have until October 2010 to wind down operations, John McDonald, a GM spokesman, said in an interview yesterday. The Detroit-based automaker said in June the Saturn sale would save 13,000 jobs and 350 dealerships. To contact the reporter on this story: Bob Willis in Washington at bwillis@bloomberg.net

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