More Americans than forecast filed applications for unemploymentbenefits last week, reflecting an unwinding of adjustments forseasonal swings at the start of a quarter.

Jobless claims increased by 46,000 to 388,000 in the week endedOct. 13 from a revised 342,000 the prior period that was the lowestsince February 2008, Labor Department figures showed today inWashington. The median forecast of 49 economists surveyed byBloomberg called for a rise in claims to 365,000.

The typical pattern of large increases in unadjusted claims atthe start of the quarter seems to have shifted by a week in onestate, causing the adjusted data to become volatile, a LaborDepartment spokesman said as the figures were released to thepress. Through the ups and downs, the level of firings has beenlittle changed, indicating that a lack of hiring is the main reasonpayrolls have failed to strengthen.

“When you get to the turn of a quarter, the seasonals jump alot,” said Brian Jones, a senior U.S. economist at Societe Generalein New York, who projected claims would claims to 375,000. “Thelabor market is getting better, but at a glacial pace. Claims aregoing sideways.”

Stock-index futures extended earlier losses after the report.The contract on the Standard & Poor's 500 Index maturing inDecember dropped 0.2 percent to 1,453.6 at 8:48 a.m. in NewYork.

Estimates in the Bloomberg survey ranged from 345,000 to390,000. The Labor Department revised the previous week's figure upfrom an initially reported 339,000.

Today's report showed unadjusted claims in California dropped by4,979 in the week ended Oct. 6. Last week the Labor spokesman saidclaims typically surge at the start of a quarter as peoplereceiving benefits reapply in order for the government to recertifytheir eligibility.

In the most recent week, all states reported and none wereestimated, the spokesman said.

The four-week moving average, a less volatile measure than theweekly figures, rose to 365,500 last week from 364,750. The averagenumber of claims over the past two weeks was in line with thefour-week average, indicating little change in the pace of firingsoutside the seasonal swings.

Last week included the 12th of the month, which coincides withthe period the Labor Department uses in its survey of employers tocalculate monthly payroll growth. The employment report for Octoberwill be released on Nov. 2, four days before the presidentialelection.

Presidential Vote

Economic issues including jobs are central to the race. Gallup'sdaily tracking of registered voters conducted Oct. 10 through Oct.16 showed President Barack Obama with 46 percent and Republicanchallenger Mitt Romney with 48 percent support. The margin of erroris two percentage points.

Payrolls rose 114,000 in September after a 142,000 increase theprior month, according to Labor Department figures released earlierthis month. The unemployment rate dropped to a three- year low of7.8 percent from 8.1 percent.

Today's report showed the number of people continuing to receivejobless benefits fell by 29,000 in the week ended Oct. 6 to 3.25million.

The continuing claims figure does not include the number ofAmericans receiving extended benefits under federal programs.

Those who've used up their traditional benefits and are nowcollecting emergency and extended payments decreased by about 7,200to 2.13 million in the week ended Sept. 29.

The unemployment rate among people eligible for benefits droppedto 2.5 percent from 2.6 percent in the prior week, today's reportshowed.

Forty-nine states and territories reported an increase in claimstwo weeks ago, while 4, including California, reported a drop.These data are reported with a one-week lag.

Initial jobless claims reflect weekly firings and tend to fallas job growth — measured by the monthly non-farm payrolls report —accelerates.

Amazon.com Inc., the world's biggest online retailer, is amongemployers taking on workers for the holiday season. TheSeattle-based company said on Oct. 16 that it will add more than50,000 seasonal positions, and didn't specify how that compareswith 2011. Macy's Inc., the second-biggest U.S. department-storechain, plans to hire about 2,000 more workers than the 78,000 ithired last year.

Some companies cite the lack of faster progress in the jobmarket as a reason for weak demand. Dollar Tree Inc., the U.S.operator of more than 4,500 discount stores, said third-quartersales will be at the low end of its forecast.

“We'd like to see better employment,” Bob Sasser, chiefexecutive officer, said on an Oct. 11 teleconference with analysts.“I'd prefer to have people with money in their pocket tospend.”

Bloomberg News

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