New jobless claims fell more than expected last week from a 16-year high, the government said today, though they remain at elevated levels due to the slowing economy.
The U.S. Labor Department reported that initial requests for unemployment benefits fell to a seasonally adjusted 529,000 from the previous week’s upwardly revised figure of 543,000. That is lower than analysts’ expectations of 537,000.
Despite the improved number, initial claims remain at recessionary levels. The four-week average, which smooths out fluctuations, rose to 518,000, its highest level since January 1983, when the economy was emerging from a steep recession.
The number of people continuing to claim unemployment insurance also dropped unexpectedly to 3.96 million, down from the previous week’s 4.02 million, which was the highest level in 25 years. The labor market has grown by about half since 1983.
Economists consider jobless claims a timely, if volatile, sign of how fast companies are laying off workers. Employees who quit or are fired for cause are not eligible for benefits. (AP)
