World Bulletin / News Desk
The number of Americans filing new claims for jobless benefits roseless than expected last week, but the data continues to be influenced by distortions from seasonal auto shutdowns.
Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 365,000, the Labor Department said on Thursday. The prior week's figure was revised up to 357,000 from the previously reported 353,000.
"The claims number is not that bad. There does seem to be some difficulty dealing with the seasonals this time of year whether it's auto plant closures or lack thereof," said Cary Leahey, a senior economist at Decision Economics in New York.
Economists polled by Reuters had forecast claims rising to 370,000 last week. The four-week moving average for new claims, a better measure of labor market trends, fell 2,750 to 365,500, the lowest in four months.
Temporary plant shutdowns by automakers for annual retooling cause wide swings in claims data in July, which makes it difficult to get a clear picture of the labor market's health.
The model used by the government to smooth the numbers for typical seasonal patterns has trouble anticipating the timing of the temporary closures and in addition, some automakers kept production lines running in July.
A Labor Department official said last week was the last where the seasonal expectation was shaped by seasonal layoffs in the auto manufacturing sector.
U.S. financial markets were little moved by the data, with traders focusing attention on a press conference by European Central Bank President Mario Draghi.
The claims data has no bearing on the July employment report as it falls outside the survey period.
The government is expected to report on Friday that employers added 100,000 new workers to their payrolls last month, according to a Reuters survey, up from 80,000 in June.
Job growth averaged 75,000 per month in the second quarter, a sharp deceleration from the average monthly increase of 226,000 in the first three months of the year.
An uncertain fiscal policy path and ongoing debt problems in Europe have hurt demand and left businesses cautious about hiring new workers.
On Wednesday, the Federal Reserve signaled it was willing to ease monetary policy further, noting that economic activity had slowed in the first half of the year. Many economists expect the U.S. central bank to launch a third round of bond buying, also known as quantitative easing, in September.
The number of people still receiving benefits under regular state programs after an initial week of aid fell 19,000 to 3.3 million in the week ended July 21.
A second report showed planned layoffs at U.S. companies dropped for a second straight month in July, even as job cuts in the financial sector persisted.
Employers announced 36,855 planned job cuts last month, down 1.9 percent from June, consultants Challenger, Gray & Christmas said. So far this year, announced layoffs are up 2.5 percent from the same period in 2011.
The financial sector cut 6,156 jobs in July, the largest number since January.
"The situation in Europe is far from being resolved and ongoing weakness here could continue to take a toll on the financial sector," John Challenger, chief executive of the company, said in a statement.
Challenger also cautioned that layoffs typically slow during the summer months, while the heaviest job cuts historically happen in the fourth quarter.
"This may simply be the lull before the storm," he said.
The reflection of Syriza’s increase in votes throughout Greece is remarkable however what remains is the left wing's sucess against neo-liberal policies?
Fed repeats to be "patient" in deciding when to raise rates.
The plan help bring down current EU-wide employment of some 10 percent, the ILO said.
A stand-off between the United States and Japan over access to farm and auto markets has been holding up negotiations over the 12-nation trade pact, known as the Trans-Pacific Partnership (TPP).
Hollande calls on companies and investors to join in 'fighting climate change'.
Currency market players 'would see opportunities' in central bank's measures, billionaire currency investor warns.
Schauble denies reports Berlin has prepared for the possibility Greece may leave the euro if Syriza party wins Greek elections.
The incident at the bank weakened the Libyan dinar against the dollar on the parallel market.
Support for Russian companies, small businesses and social spending make up bulk of new measures aimed at supporting ailing Russian economy.
In just seven days the central bank spent nearly $7bn of its reserves.
The site is on 233 hectares of reclaimed land in the capital, Colombo. Under the proposed deal, 108 hectares would be given to the Chinese firm, including 20 hectares on an outright basis and the rest on a 99-year lease.
The ECB said it would purchase sovereign debt from this March until the end of September 2016, despite opposition from Germany's Bundesbank
President pushes currency, fuel reforms for ailing Venezuela
All eyes on size, details of expected stimulus programme, Greek banks bounce as emergency line granted.