By Timothy R. Homan Feb. 25 (Bloomberg) -- The number of Americans filing first-time claims for unemployment insurance unexpectedly increased last week, a sign that the economic recovery will be uneven as the labor market struggles to rebound. Initial jobless applications rose by 22,000 to 496,000 in the week ended Feb. 20, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance gained and those receiving extended benefits decreased. Companies are waiting to see sustained sales before adding to payrolls, even as manufacturers help the country emerge from the worst recession since the 1930s. An unemployment rate that’s forecast to average 9.8 percent this year may restrain the housing market and gains in consumer spending, which accounts for about 70 percent of the U.S. economy. “Strong manufacturing is not enough to support the labor market as a whole, it seems,” Ian Shepherdson, chief U.S. economist at High Frequency Economics Ltd. in Valhalla, New York, said before the report. Economists forecast weekly claims would fall to 460,000, from a previously estimated 473,000 for the week ended Feb. 13, according to the median of 43 projections in a Bloomberg News survey. Estimates ranged from 425,000 to 500,000. A Labor Department spokesman said part of the reason for the increase in weekly claims was the processing of a backlog of applications in mid-Atlantic states and New England, where snowstorms hit earlier this month. Total Beneficiaries Continuing claims rose 6,000 to 4.62 million in the week ended Feb. 13. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3.5 percent in the week ended Feb. 13, today’s report showed. Nine states and territories had an increase in claims for that same week, while 44 had a decrease. In testimony before lawmakers in Washington yesterday, Federal Reserve Chairman Ben S. Bernanke cited “tentative” signs of stabilization in labor markets, such as lower job losses, a rise in manufacturing employment and stronger demand for temporary help. 9.7% Unemployment The unemployment rate in the U.S. dropped to 9.7 percent in January, while payrolls declined by 20,000, Labor Department figures showed Feb. 5. Manufacturers last month added to payrolls for the first time in three years, and that may provide a boost to the rest of the labor market in coming months. Some companies continue to cut staff. PepsiCo Inc., the world’s largest snack maker, said it will close a Gatorade plant in Pryor, Oklahoma, that employs 109 workers. “Based on economic conditions we determined we could not keep the plant open,” Pat Burke, a regional spokesman for the Purchase, New York-based company, said in an e-mailed statement Feb. 18. Other businesses are recalling laid-off workers. Caterpillar Inc., the world’s largest maker of bulldozers and excavators, is bringing back 100 technicians at an Indiana plant to meet increased demand. “Caterpillar may be recalling or hiring employees in business units at various facilities this year based on demand fluctuation,” Bridget Young, a spokeswoman for the Peoria, Illinois-based company, said in a Feb. 18 e-mail. Caterpillar previously laid off about 500 workers at the plant in Lafayette. For Related News and Information: News on the U.S. labor market: TNI US LABOR Stories on the U.S. economy: NI USECO Stories on U.S. consumers: TNI US CONS Labor market indexes LRIN

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