By Chris Cermak
WASHINGTON (MNI) – The pace of job gains in the U.S. economy may
have slowed in April, as an unexpected rise in weekly jobless claims
left some economists worried ahead of monthly non-farm payroll numbers
due Friday from the Labor Department.
“I am a little concerned by the initial claims number. It does seem
like the improvement is stalled a little bit,” said Peter DAntonio, an
economist with Citigroup, in an interview.
Economists forecast that non-farm payrolls grew 185,000 in April,
the smallest gain since January and down from 216,000 the previous
month, while private payrolls will have added 200,000 jobs, according to
a survey by Market News International. The unemployment rate was
projected to hold at 8.8%.
Initial claims climbed to a three-month high of 429,000 for the
week ending April 23, the third straight weekly reading above 400,000.
The four-week average at 408,500 is at its highest level since February.
Continuing claims on the other hand are at their lowest level since
September 2008.
Other indicators have been mixed. Positive signs have come in
manufacturing from the Institute for Supply Managements April survey,
while the number of private company layoffs fell 5% year-over-year in
April, according to Challengers monthly tally. ADP Employer Services on
Wednesday reported 179,000 in private sector job gains, the smallest in
five months.
Some uncertainty is still coming from the Japanese earthquake and
tsunami earlier this year. But Citigroups DAntonio said he didnt
expect any supply disruption fallout to affect the labor market until
the summer months.
The employment situation report for April will be released at 8:30
a.m. ET Friday by the Labor Department.
— Chris Cermak is a reporter with Need to Know News
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$]