Lowest level since late February By Greg Robb WASHINGTON (MarketWatch) — The number of people filing for state unemployment benefits for the first time fell 23,000 to the lowest level since late February, the government said Thursday. The Labor Department said claims fell to a seasonally adjusted 381,000 last week. The level of initial claims in the week ended Nov. 26 was revised up by 2,000 to 404,000. A Labor Department official said that seasonal adjustment factors were at play in the large decline. The models had expected a larger increase than actually took place. Economists surveyed by MarketWatch had been looking for first-time claims to decline slightly in the week ended Dec. 3. The four-week average of new claims also fell, down 3,000 to 393,250. This is the lowest level since early April. The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data. Economists generally believe it’s a sign of faster job creation and stronger economic growth when claims fall below the 400,000 threshold. Although the claims data directly reflects people who lose their jobs, the number of claims declines when hiring outpaces layoffs. Since late April claims have gradually fallen from a 2011 high of 478,000 to around the 400,000 mark. If claims can stay at this week’s level, it would be a sign that hiring has increased. Meanwhile, the number of people collecting regular state benefits fell by 174,000 in the week ended Nov. 26 to a seasonally adjusted 3.58 million, the lowest number since September 2008. The insured unemployment rate fell two-tenths of a percentage point, to 2.8%. This is the lowest rate since Oct. 2008. The four-week average of continuing claims dropped 20,500 to stand at 3.67 million.

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