Weekly Claims Edge Down But Jobs Picture Still Muddled
July 29, 2010 21:07
New U.S. claims for unemployment benefits fell slightly more than expected last week, offering a ray of hope for the anemic labor market recovery. Initial claims for state unemployment aid dropped 11,000 to 457,000, the Labor Department said on Thursday.
Analysts polled by Reuters had forecast claims slipping to 459,000 from the previously reported 464,000 the prior week, which was revised slightly up to 468,000 in Thursday's report. The four-week average of new jobless claims, seen as a better measure of underlying labor market trends, fell 4,500 to 452,500.
"It is certainly a relief to see a decline in the number of Americans filing for unemployment insurance for the first time," Jennifer Lee, senior economist at BMO Capital Markets, said in a research note. "Although that takes some of the sting out of the prior week's upwardly revised jump of 41,000, the level is still too high for anyone's liking."
A Labor Department official described the report as "fairly straight forward." Jobless claims have not fallen much this year and remain above levels that analysts say are consistent with sustained jobs growth.
Sluggish jobs growth remains the biggest obstacle to the economy's recovery from its longest and deepest recession since the 1930s, which showed signs of slowing down in the last couple of months.
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