The number of U.S. workers filing for unemployment benefits fell for the second week in a row last week, suggesting job creation is likely to rise at a steady rate in the coming months.
First-time jobless claims fell 2,000, to 301,000, the Labor Department said Thursday. In addition, the four-week average–a less volatile gauge of claims–fell to its lowest level in more than a year.
Thursday’s report covers the same week in which the government conducts its survey for the monthly jobs report, so economists watch it closely.
Strong job creation will encourage consumers to spend, helping to offset the drag Asia’s economic crisis is having on U.S. manufacturing.
Consumer spending is key to the outlook, because it accounts for about two-thirds of economic activity.
Evidence that companies see stable employment conditions showed up in the Philadelphia Federal Reserve Bank’s August business outlook survey released Thursday. The survey covers manufacturers in New Jersey, Delaware and eastern Pennsylvania.
The Philadelphia Fed’s index of employment expectations six months from now rose, as 60 percent of those responding said they planned no change in the size of their workforce, while 22 percent said they expected to hire more workers. Only 15 percent felt they’d have fewer employees.
