Feb. 12 (Bloomberg) -- The number of Americans collecting unemployment benefits rose for a fourth straight week, reaching a record, as companies accelerated firings.

The total number of recipients rose to 4.81 million in the week ended Jan. 31 from 4.8 million the prior week, the Labor Department said today in Washington. First-time unemployment applications fell by 8,000 to 623,000 last week, a smaller drop than economists expected.

Companies ranging from Wal-Mart Stores Inc. to General Motors Corp. announced job cuts this week, reflecting a deepening recession that’s now in its second year. President Barack Obama aims to create as many as 4 million jobs with a $789 billion stimulus plan awaiting approval in Congress.

“The labor market still looks pretty bad,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York who forecast initial claims would fall to 620,000. “There’s still a lot of job destruction going on.”

Another government report showed sales at U.S. retailers unexpectedly rose in January for the first time in seven months, reflecting higher gasoline prices and more spending on items such as clothing and food. The 1 percent increase, breaking the longest string of declines on record, followed a revised 3 percent drop the prior month, the Commerce Department said today in Washington. Purchases excluding autos gained 0.9 percent.

Economists’ Estimates

Claims were projected to fall to 610,000 from a previously reported 626,000, according to the median forecast of 45 estimates in a Bloomberg News survey. Projections ranged from 510,000 to 650,000. Claims for the prior week were revised higher to 631,000.

The four-week moving average of claims, a less volatile measure, climbed to 607,500 last week from 583,500 the previous week, today’s report showed. That was the highest level since November 1982.

The unemployment rate among people eligible for benefits, which tends to track the U.S. jobless rate, held at 3.6 percent in the week ended Jan. 31.

Forty-one states and territories had an increase in new claims for the week ended Jan. 31, while 12 reported a decrease.

Last month U.S. companies slashed 598,000 workers from payrolls, the most since December 1974, the Labor Department said Feb. 6. The jobless rate climbed to a 16-year high of 7.6 percent, from 7.2 percent in December.

Forecast Lowered

The world’s largest economy will contract 2 percent this year, half a percentage point more than last month’s forecast, according to the median of 50 projections in a Bloomberg News survey taken Feb. 2 to Feb. 10. The unemployment rate may climb to 8.8 percent this year, according to the monthly poll.

The U.S. has lost 3.57 million jobs since the recession began in December 2007.

Estee Lauder Cos., the maker of Clinique and Bobbi Brown cosmetics, said last week it will cut 2,000 jobs as declining sales reduced profit. The job cuts represent 6 percent of the workforce and will occur over the next two years, the New York- based company said in a Feb. 5 statement.

“We’re looking to reduce and eliminate the duplication of activities that are not visible to the consumer,” Chief Executive Officer William Lauder said in a telephone interview. “We have to be very vigilant in understanding what motivates the consumer, what gives her a level of confidence to shop.”

An economic stimulus bill is headed for passage in the U.S. Congress by the end of this week after lawmakers agreed on a $789 billion plan that aims to stem the recession through a mix of government spending and tax cuts.

To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

Last Updated: February 12, 2009 08:48 EST