WASHINGTON — The number of Americans seeking unemployment benefits fell 5,000 to a seasonally adjusted 343,000 last week, a sign that layoffs remain low and companies are adding a modest number of jobs.
In a separate report, payroll provider ADP said that businesses added 188,000 jobs in June, up from 134,000 in May and the most since February. That’s a hopeful sign hiring is picking up a bit.
Weekly applications for unemployment benefits are a proxy for layoffs. Since March, they have fluctuated roughly between 340,000 and 360,000, a level consistent with steady hiring.
The four-week average, a less volatile figure, dipped just 750 to 345,500, the Labor Department said Wednesday. The average has fallen 9 percent in the past year.
On Friday, the government will issue its June jobs report. Economists forecast that it will show employers added 165,000 jobs, slightly below the 175,000 gain in May. The unemployment rate likely ticked
down to 7.5 percent from 7.6 percent. The economy has added an average of about 175,000 jobs per month for the last two years.
More hiring could help the economy grow faster later this year. The economy expanded at only a 1.8 percent annual rate in the January-March quarter. Most analysts think it grew at a similarly tepid annual pace between 1.5 percent and 2 percent in the April-June period.
Two reports this week suggested that manufacturers are receiving more orders and are likely producing more but aren’t necessarily hiring more workers.
Spending at retail businesses rose in May, a sign that solid job growth has encouraged Americans to open their wallets. And the improving job market has lifted consumer confidence to its highest point in 5½ years.
The Institute for Supply Management said Wednesday that its index of service-sector growth fell in June to 52.2. That’s down from 53.7 in May and the lowest reading in more than three years. Any reading above 50 indicates expansion.
The index was dragged down by steep drops in new orders and a measure of the business outlook.
Still, a gauge of employment jumped to 54.7, up from 50.1 in May. That’s the first increase in five months and suggests services firms hired more briskly last month.
The survey measures growth at businesses that cover most of the job market. They range from construction companies and health care firms to retail businesses and restaurants.
Copyright © 2011, Capital City Press LLC • 7290 Bluebonnet Blvd., Baton Rouge, LA 70810 • All Rights Reserved