First-time jobless claims expected to rise
WASHINGTON — The number of newly laid-off American workers seeking unemployment benefits likely rose last week, evidence that jobs remain scarce.
Wall Street economists forecast that first-time claims for unemployment insurance rose to a seasonally-adjusted 555,000 last week from 550,000 the previous week, according to a survey by Thomson Reuters. The number of people remaining on the jobless benefit rolls also is expected to increase slightly, to 6.1 million from 6.09 million.
The Labor Department report scheduled for today comes even as the Federal Reserve said Wednesday that production by U.S. factories, mines and utilities increased for the second straight month in August, the latest sign the economy is recovering. Inflation, meanwhile, remains essentially nonexistent, as prices rose only modestly last month.
Still, the economy isn't improving fast enough to spur greater hiring. Jobless benefit claims have trended down since topping 670,000 in early April, but remain far above the 325,000 per week associated with a healthy economy.
