MW: Initial jobless claims fall, continuing claims at 26-yr high
First-time applications for state unemployment benefits fell 94,000 to a seasonally adjusted 492,000 in the week ending Dec. 27, the Labor Department said Wednesday, citing seasonal factor volatility to explain the surprising drop. Despite the decline, the level of claims is 45% higher than the same period in the prior year. The four-week average of new claims fell 5,750 to 552,250. Meanwhile, the number of people collecting benefits in the week ending Dec. 20 rose 140,000 to 4.51 million - the highest level since December 1982. The four-week average of continuing claims rose 103,750 to 4.42 million - also the highest level since December 1982. The government added that the insured unemployment rate rose to 3.4% -- the highest level since November 1983 -- from 3.3% in the prior week.
