BLBG: Jobless Claims in U.S. May Show Firings Abated at Year’s End
By Courtney Schlisserman
Dec. 31 (Bloomberg) -- Fewer Americans filed claims for unemployment benefits as 2009 drew to a close, pointing to an improvement in the labor market that will help sustain economic growth next year, economists said before a report today.
Some 460,000 workers applied for jobless insurance payments in the week ended Dec. 26, up from a one-year low of 452,000 a week earlier, according to the median forecast of 27 economists surveyed by Bloomberg News. It would mark the sixth consecutive week of less than 500,000 claims, the best performance since 2008.
Companies are retaining staff as sales improve and production picks up. Gains in consumer spending, which accounts for 70 percent of the economy, may encourage more hiring in coming months, helping to bolster the rebound from the worst recession since the 1930s.
“We’ve seen a very steady decline in claims, consistent with conditions improving in the overall labor market,” said Zach Pandl, an economist at Nomura Securities International Inc. in New York. “You can’t really have a recovery in the economy unless you have a better job market.”
The Labor Department’s claims report is due at 8:30 a.m. in Washington. Survey estimates ranged from 435,000 to 490,000.
The number of claims reached a 26-year high of 674,000 in the week ended March 27.
Shares have advanced this year amid evidence the economy is improving. The Standard & Poor’s 500 Index is up 25 percent in 2009, and is headed for its biggest annual gain in six years.
President Barack Obama this month signed into law legislation that included a stopgap provision to ensure that unemployment benefits weren’t cut off over the holidays.
Jobs Report
The government is scheduled to release its December payrolls report on Jan. 8. In November, the economy lost the fewest jobs since the recession began two years ago and the unemployment rate receded to 10 percent from a 26-year high of 10.2 percent the prior month.
Even so, Americans are concerned about their financial future. Fewer people in December believed their incomes will increase over the next three to six months, the Conference Board’s confidence report this week showed.
Warren Buffett’sBerkshire Hathaway Inc. is among companies that slashed employment in 2009. The Omaha, Nebraska- based company last week said it cut 21,000 workers from its payroll amid a slump at the firm’s manufacturing and retail units. The company and its subsidiaries now have about 225,000 workers, it said in regulatory filings.
