By Shobhana Chandra Nov. 19 (Bloomberg) -- The number of Americans filing claims for unemployment benefits held at a 10-month low last week, a sign firings are letting up as the economy recovers. Initial jobless claims were unchanged at 505,000 in the week ended Nov. 14, in line with the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people collecting unemployment insurance dropped in the prior week, while those getting extended payments jumped. The loss of 7.3 million jobs since the recession began in December 2007, the biggest drop of any postwar economic slump, makes an acceleration in firings less likely as consumers begin to spend. A rebound in hiring may take longer to develop as companies have ample room to boost hours for current employees before taking on additional staff. “The labor market is improving, but at a glacial pace,” said Tom Porcelli, a senior economist at RBC Capital Markets in New York, who had forecast claims would fall to 503,000. “People are having a hard time finding a job as companies remain wary of the economic recovery. We expect it will be a jobless recovery.” Jobless claims were estimated to increase to 504,000 from 502,000 initially reported for the prior week, according to the median forecast of 42 economists in a Bloomberg News survey. Estimates ranged from 485,000 to 550,000. Futures on the Standard & Poor’s 500 Index declined 0.7 percent at 8:49 a.m. in New York. The yield on the 10-year Treasury note fell 2 basis points to 3.34 percent. Due to the U.S. Thanksgiving holiday on Nov. 26, the Labor Department said it will issue the next claims report on Nov. 25. Survey Week Today’s numbers represent claims from the survey week for nonfarm payrolls, and will be closely watched for signals on job losses in November, economists said. There were 531,000 claims filed in last month’s survey week. The Labor Department will release the November jobs report on Dec. 4. The economy lost 190,000 jobs in October and the unemployment rate rose to 10.2 percent, the highest level since 1983. The report showed the four-week moving average of initial claims, a less volatile measure, fell to 514,000 last week, the lowest level in a year, from 520,500. Continuing claims fell by 39,000 in the week ended Nov. 7 to 5.61 million. They were forecast to drop to 5.59 million. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. Today’s report showed the number of people who’ve used up their traditional benefits and are now collecting extended payments jumped by about 119,000 to 4.16 million in the week ended Oct. 31. Benefits Extended President Barack Obama on Nov. 6 signed into law a plan to extend jobless benefits, expand a tax credit for first-time homebuyers, and provide tax refunds to money-losing companies. The measure also gives jobless people as many as 20 additional weeks of unemployment assistance. A Labor Department official said today’s figures don’t reflect the new extension and it may take until mid December for the complete readings to become available. The President has also announced plans to convene a jobs summit at the White House next month. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 4.3 percent in the week ended Nov. 7. Forty-eight states and territories reported an increase in claims, while five 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. Additional Firings Electronic Arts Inc., the second-largest video-game publisher, is among companies still cutting staff. The Redwood City, California-based company this month said it’ll eliminate 1,500 jobs and close several facilities after reporting its 11th straight quarterly loss. Some companies are using other means to reduce labor costs. Reed Smith LLP, the 16th highest grossing U.S. law firm, said it will cut salaries for incoming associates by 20 percent. “In response to our clients’ feedback and concerns about driving down the cost of legal services, we wanted to send a clear message that we are listening,” firm managing partner Gregory Jordan said in a statement on Nov. 10. Reed Smith has offices in cities including Pittsburgh, London and New York. To contact the reporters on this story: Shobhana Chandra in Washington schandra1@bloomberg.net

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