The number of new applications for jobless benefits rose
last week but stayed near 2014 lows, a sign ahead of Friday's jobs report that
the labor market continues its steady improvement. Initial claims for
unemployment benefits increased by 4,000 to a seasonally adjusted 302,000 in
the week ended Aug. 30, the Labor Department said Thursday. That was slightly
above the 300,000 forecast by economists surveyed by The Wall Street Journal.
The four-week moving average of claims rose 3,000 to
302,750. Initial jobless claims, viewed as a proxy for layoffs, fell to a 2014
low of 279,000 in mid-July and have been hovering around 300,000 since then.
The last time that regularly happened was in early 2006, at the height of the
last economic expansion.
The lower level of claims also reflects a declining rate at
which laid-off workers file for benefits in a generally improving economy. As
the newly laid off become more optimistic about their chances of quickly
finding a new job, many don't bother to file benefit claims.
The pace of hiring has stepped up a gear this year, with
employers adding 200,000 or more jobs for the past six months, according to
data from the Labor Department. Economists polled by The Wall Street Journal
expect new payrolls data out Friday to show U.S. employers added 225,000 jobs
in August. They added 209,000 in July.
A separate survey of private-sector employers released
Thursday showed that the pace of hiring slowed slightly in August. Private
payrolls increased by 204,000 jobs last month, according to the employment
report compiled by payroll processor Automatic Data Processing Inc. and
forecasting firm Moody's Analytics. The July increase was revised down to
212,000 from 218,000.
At 6.2%, the nation's unemployment rate remains at a
historically high level for this point in the recovery. But anecdotal evidence
is mounting that labor shortages are developing for certain occupations.
Thursday's jobless claims report showed the number of people
continuing to draw unemployment benefits fell by 64,000 to 2,464,000 for the
week ended Aug. 23. Those figures are reported with a one-week lag.
Continuing claims are now at their lowest level since
mid-2007.
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