(Bloomberg) -- Applications for U.S. unemployment benefitsremained below 300,000 for a 14th straight week, a sign of labormarket strength that will help fuel U.S. growth.

Jobless claims rose by 2,000 to 279,000 in the week ended June6, a Labor Department report showed Thursday in Washington. Themedian forecast of 48 economists surveyed by Bloomberg called for275,000. The four-week average of initial applications also creptup.

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The data indicate employers are retaining workers inanticipation of a pickup in demand this quarter after a slow startto the year. Combined with a spring spurt in payrolls, theemployment picture bodes well for household spending, the biggestpart of the economy.

“There’s not much going on in the way of layoffs, they remainlow,” said Joshua Shapiro, chief U.S. economist at Maria FioriniRamirez Inc. in New York, who projected claims of 280,000. “Thelabor market is reasonably good. Consumer spending is gettingsupport from the labor market clearly and from some incomegrowth.”

Another report Thursday showed a pickup in May retail sales. TheCommerce Department said purchases last month jumped 1.2 percent,reflecting broad-based gains from auto dealers to clothingretailers to department stores, after a 0.2 percent April gain.

Since the first week of March, applications for unemploymentbenefits have been below the 300,000 level that economists say isconsistent with an improving job market.

No states estimated data last week and there was nothing unusualin the report, an agency spokesman said as the figures werereleased.

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Economists’ estimates in the Bloomberg survey ranged from claimsof 260,000 to 285,000. The Labor Department revised the previousweek’s figure to 277,000 from an initially reported 276,000.

The four-week moving average, a less volatile measure than theweekly numbers, climbed to 278,750 last week, from 275,000.

Continuing claims

The number of people continuing to receive jobless benefits roseby 61,000 to 2.27 million in the week ended May 30. The joblessrate among people eligible for benefits climbed to 1.7 percent from1.6 percent. These data are reported with a one- week lag.

Federal Reserve policy makers are watching the labor market asthey consider the timing of the first interest rate increase since2006. The Federal Open Market Committee is scheduled to gather onJune 16-17.

Hiring has rebounded, Labor Department figures showed on June 5.Payrolls rose by 280,000 workers in May after a 221,000 gain theprior month. A rise in the number of people entering the laborforce caused the unemployment rate to edge up to 5.5 percent.Hourly earnings climbed from a year ago by the most since August2013.

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Businesses are also putting up more help-wanted signs. Jobopenings rose above hires in April for the first time in recordsgoing back to December 2000, data showed this week.

Federal Reserve

Recent reports indicate the U.S. is emerging from a first-quarter slump. The economy expanded in the past two months, withfour of 12 Fed districts reporting “moderate” growth and threeothers describing the expansion as “modest,” according to the BeigeBook released June 3.

Initial jobless claims reflect weekly firings, and a sustainedlow level of applications has typically coincided with faster jobgains. In an environment of accelerating employment growth, manyweekly layoffs may also reflect company- or industry-specificcauses, such as cost-cutting or business restructuring, rather thanunderlying labor market trends.

Among businesses that are reducing headcounts is Peabody EnergyCorp., the largest U.S. coal producer. The company plans to dismissabout 250 workers in coming months and close offices in Indiana andWyoming amid falling demand and prices for the fossil fuel. Peabodysaid this week that the moves may help it save $40 million to $45million annually.

--With assistance from Chris Middleton inWashington.

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