Report indicates labor stability

Fewer U.S. workers signed up for unemployment aid last week, underscoring stability in the labor market, and inventories at U.S. wholesalers picked up in April in a sign businesses are preparing for more demand later this year.

The number of U.S. workers signing up for first-time unemployment benefits slipped by 1,000 to a seasonally adjusted 309,000 for the week ended June 2, the Labor Department reported.

“The core story here, though, remains that companies are not laying people off at the sort of pace that would normally be expected given the slowdown in economic growth. We are very curious to see if this can persist as consumption slows markedly in the face of the surge in gas prices,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, N.Y.

The four-week moving average of jobless claims, which irons out weekly fluctuations in this data, moved up to 307,250 from 304,500.

A separate Commerce Department report showed inventories at U.S. wholesalers rising 0.3% in April as stocks of nondurable goods posted the biggest percentage increase in five months.

The rise in inventories matched economist expectations for a 0.3% rise after March’s previously reported 0.3% gain.