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More Americans than projected filed applications for unemployment benefits last week, which may raise concern the slowdown in economic growth is prompting an increase in firings.
Jobless claims jumped by 32,000 to 360,000 in the week ended May 11, exceeding all forecasts in a Bloomberg survey of economists and the most since the end of March, Labor Department figures showed today in Washington. A Labor Department spokesman said no state provided information explaining the surge in applications which was the biggest since the aftermath of superstorm Sandy in November.
Job dismissals need to keep declining to lay the ground for a pickup in hiring once companies see growth in sales. The lack of bigger gains in employment, at a time Americans are faced with a higher payroll tax, will make it harder for households to sustain spending, the biggest part of the economy.
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