By Ruth Mantell
WASHINGTON (MarketWatch) -- The number of people applying for initial state unemployment insurance benefits fell 29,000 to 429,000 in the week ended July 10, hitting the lowest level since August 2008, the Labor Department reported Thursday. Economists surveyed by MarketWatch had expected an initial claims level of 445,000. A Labor Department analyst cited fewer-than-expected manufacturing layoffs. The four-week average of initial claims - a better gauge of employment trends than the volatile weekly number - fell 11,750 to 455,250. Continuing claims in the week ended July 3 rose 247,000 to 4.68 million. Recent volatility in this number is due to seasonal adjustment issues, according to the Labor Department. The four-week average of these continuing claims rose 22,000 to 4.58 million. The total number of people collecting some type of unemployment benefits in the week ended June 26 was about 8.7 million, down about 270,000 from the prior week. A federal extension of benefits has expired, and an estimated 2.5 million people will have been cut off from benefits by July 17. Congress is working on a new extension that could be approved in coming days.
