Jobless Benefit Claims Climb

L.A. Times Archives

March 3, 2006 12 AM PT

From Reuters

WASHINGTON —

New claims for U.S. jobless benefits rose more than expected last week, the government said Thursday, but a separate report showed that planned layoffs fell sharply in February, suggesting the job market remained robust.

Meanwhile, top executives of U.S. companies expect to see continued strength in the nation’s economy over the next six months, especially in new hiring, according to a survey released Thursday by the Business Roundtable.

Initial filings for state unemployment insurance aid rose to 294,000 in the week ended Saturday from an upwardly revised 279,000 for the previous week, the Labor Department said.

A department analyst said the rise in new claims was partly because of a failure of the seasonal adjustment process to anticipate two holidays not celebrated nationwide, Abraham Lincoln’s birthday and Presidents Day.

A report by outplacement firm Challenger, Gray & Christmas Inc. indicated the number of corporate layoffs in the pipeline fell 15.5% in February to their lowest level in four months, with fewer job cuts in telecommunications, consumer products, manufacturing and industrial goods.

The two reports are not directly comparable, because jobless claims measure the tally of layoffs last week and the Challenger report gauges layoff announcements, not the actual layoffs, which could come months later. But both suggest a relatively healthy labor market.

In the Business Roundtable survey, high energy prices remain an area of concern, according to the quarterly survey of the group’s members, chief executives of large U.S. companies. Respondents also expected U.S. economic growth to slow to about 3.2% in 2006 from 3.5% in 2005.

“Based on today’s survey, we see job growth and continued investment, a winning combination at this part of the business cycle,” Hank McKinnell, chairman of the Business Roundtable and CEO of Pfizer Inc., told reporters in a conference call.

CEOs see core inflation as surprisingly well contained despite high oil prices, with warm winter weather helping to alleviate the crunch from increased fuel costs, he said.

The overall CEO economic outlook index rose to 102.2 in March from 101.4 in December. It was the second-highest reading ever, behind 104.4 in the March 2005 survey. A number higher than 50 indicates economic expansion.

About 43% of respondents expected to increase employment in the next six months, up from 40% three months ago, while 42% expected no change and 15% said they would cut jobs.

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Cold front

Year-over-year percentage change in February sales at stores open at least a year

Company(% change)

Wet Seal(+29.3%)

Gymboree (+18.0)

Guess (+8.6)

Ross (+6.0)

Limited Brands (+5.0)

Nordstrom (+4.9)

Target(+3.6)

Wal-Mart(+3.2)