Jobless claims rise on seasonal layoffs

Initial jobless claims increased last week to a seasonally adjusted 377,000, as employers continued seasonal job cuts. 

After hitting the lowest level since April 2008 two weeks ago, first-time applications rose by 21,000, as holiday volatility temporarily affected the improving job market, the Labor Department said Thursday.

The steady downward trend in jobless claims reflects a strengthening labor market that has seen gradual improvement since the summer: The economy added 200,000 jobs in December and the unemployment rate dropped to 8.5 percent, the lowest level in about three years. 

The four-week moving average, a less-volatile measure than the weekly figure, was 377,500, a decrease of 2,500 from the previous week’s revised average of 380,000. 

Economists argue that applications need to stay at less than 375,000 to reflect a healthy market. 

The economy entered 2012 with some momentum, coming off positive news to round out last year, as holiday sales exceeded expectations, consumer confidence increased and factories produced more. 

More jobs will mean more consumer spending to fuel the nation’s economic recovery. 

On Thursday, the Commerce Department reported that durable-goods orders were up by 3 percent in December, the second consecutive monthly gain. 

Durable goods — which can provide a gauge of future business spending — include machinery and equipment and are products expected to last at least three years.

Despite these improvements, the Federal Reserve on Wednesday predicted that the unemployment rate could drop to about 8.2 percent by the end of 2012 while the economy expands at a 2.5 percent rate. 

Although the figures are positive, there is still plenty of ground to cover — nearly 9 million jobs were lost during the economic downturn and more than 13 million don’t have jobs while millions of others have given up looking. 

There is concern among U.S. officials that Europe’s financial crisis could weigh on the nation’s economic recovery. The International Monetary Fund forecast 1.8 percent growth for the United States this year, unchanged from its September forecast. The IMF is expecting a recession in Europe that will weigh on global growth.