The number of Americans filing first- time claims for unemployment benefits increased more than forecast last week, adding to concern the job market is softening.
Initial jobless claims rose by 28,000, the biggest jump since February, to 337,000 in the week that ended Oct. 13, the Labor Department said today in Washington. The four-week moving average, a less volatile measure, gained to 316,500 from 310,500.
Companies are growing more reluctant to hire workers, as the deepening slump in housing and a squeeze on credit curtail demand, economists said. Slower job growth may restrain consumer spending, which accounts for more than two-thirds of the economy.
``The labor market doesn't look in as good a shape as it did a few months ago,'' Ellen Zentner, an economist at Bank of Tokyo- Mitsubishi UFJ Ltd. in New York, said before the report.
``Businesses are becoming more cautious, not only with their investment plans but hiring plans as well. We'll get a job market that's growing at a much slower rate.''
Economists had forecast initial jobless claims would rise to 312,000 after a 308,000 level reported the prior week, according to the median estimate of 42 economists in a Bloomberg News survey. Estimates ranged from 310,000 to 340,000.
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