New claims for unemployment benefits fell 28,000 in the latest week, to a lower-than-expected 452,000, sign of a more stable labor market.
That’s a better performance than the decline to 470,000 economists had expected.
The four-week average for claims, which smooths out fluctuations, fell to 465,250 — 16th straight weekly decline, the Labor Department said. That’s viewed as an encouraging sign that the labor market is improving gradually.
nemployment claims have been falling unevenly since summer. That improvement is seen as a sign that jobs cuts are slowing and hiring could pick up early next year. The fall in weekly claims of 28,000 last week follows two smaller weekly increases.
But the Labor Department warned that seasonal employment from holidays and other variables in the calendar made last week a difficult one to seasonally adjust.
Economists monitor jobless claims as a gauge of the pace of layoffs. Analysts say initial claims need to fall to about 425,000 for several weeks to signal the economy is beginning to add jobs.
The government said the number of people continuing to receive regular jobless benefits fell 127,000 to 5.08 million the week ended Dec. 12. That figure does not include millions of people who have used up the 26 weeks of benefits typically provided by states and are now receiving extended benefits for up to 73 additional weeks, paid for by the federal government.
The number of people receiving extended benefits jumped to 4.37 million the week ended Dec. 5, an increase of 141,807 from the previous week. That big rise slows that the problem of high unemployment persists despite a decline in layoffs.
It also reflects the fact that 38 states are now processing claims for the extension of benefits that Congress approved last month.
http://www.usatoday.com/money/economy/2009-12-24-jobless-durable-goods-orders_N.htm
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