MW: Jobless claims fall to lowest level since April
Claims declined by 5,000 last week to 388,000
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — The number of people applying for jobless benefits fell last week to the lowest level in seven months, suggesting slow but gradual improvement in the U.S. labor market.
Initial claims for unemployment compensation fell by 5,000 to a seasonally adjusted 388,000, the Labor Department said Thursday. Applications from two weeks ago were revised up to 393,000 from an original reading of 390,000.
Economists surveyed by MarketWatch had expected new requests for jobless benefits to climb to 397,000 in the week ended Nov. 12.
The average of new claims over the past four weeks, meanwhile, fell by 4,000 to 396,750, also the lowest level since early April. The monthly average is seen as a more accurate gauge of labor trends because it irons out volatility in the week-to-week data.
The number of initial claims has gradually fallen — in fits and starts — from a 2011 high of 478,000 in late April to below the symbolic 400,000 mark. Economists generally believe that claims under that level signify faster job creation.
The failure of claims to fall quickly below that level, however, indicates the pace of hiring is improving at a slow pace. Last month, the U.S. economy added just 80,000 net jobs, according to the government’s initial estimate.
That’s less the number of jobs needed to absorb the natural increase in the labor force and falls far short of what’s required to slash the nation’s 9.0% unemployment rate.
Economists say the U.S. would have to average 250,000 new jobs a month over several years to bring the jobless rate back down to pre-recession levels of around 6%.
The Labor’s Department’s weekly claims report also showed that the number of Americans who continue to receive regular state unemployment checks fell by 57,000 to 3.67 million in the week ended Nov. 5. Continuing claims are reported with a one-week lag.
About 6.77 million people received some kind of state or federal benefit in the week ended Oct. 29, down 62,378 from the prior week. Total claims are reported with a two-week lag.
The federal government offers extended compensation to millions of Americans whose state benefits have already expired. Benefits in most states last six months.
