WASHINGTON -(Dow Jones)- Many fewer workers filed for unemployment benefits last week, an indication the job market is slowly healing.
A Labor Department report Thursday showed new claims for benefits fell more than expected and continuing claims dropped to the lowest in more than a year.
Initial claims for jobless benefits fell 43,000 to a seasonally adjusted 440,000 in the week ended Feb. 6.
The big drop in new claims, following a jump some weeks back, reflected the end of an administrative backlog in California. But the report contained signs of improvement. The four-week average of new claims, for instance, declined by 1,000 to 468,500. Four months ago, it was at 540,500.
"We continue to think that the underlying pace of layoffs is slowing and the labor market is gradually improving," RBS economist Omair Sharif said.
With joblessness at 9.7%, according to Labor's latest, January reading, the jobs market is a big obstruction in the economy's road to recovery. People either out of work or afraid of being laid off aren't spending so much. Consumer spending is vital to the economy; It makes up 70% of gross domestic product, the broad measure for U.S. economic activity. So the decreases in the Thursday data were welcome.
The Labor Department released the report even as severe winter weather shut down most of the nation's capital and the U.S. government. The crippling storm could contribute to high volatility in claims reports in coming weeks, with idled workers streaming into unemployment offices for benefits after being shutout this week due to the rotten weather.
Economists surveyed by Dow Jones Newswires had expected claims last week would slide by 12,000.
The tally of continuing claims, those drawn by workers collecting benefits for more than one week, in the week ended Jan. 30, fell by 79,000 to reach 4,538,000, the lowest level since the week of Jan. 3, 2009.
The unemployment rate for workers with unemployment insurance was unchanged at 3.5%.
Not adjusted to reflect seasonal fluctuations, Pennsylvania reported the largest jump in new claims during the Jan. 30 week due to an increase in layoffs in the construction, trade and service sectors. New Jersey reported the largest decrease due to fewer layoffs in trade and service industries.
A Labor Department report Thursday showed new claims for benefits fell more than expected and continuing claims dropped to the lowest in more than a year.
Initial claims for jobless benefits fell 43,000 to a seasonally adjusted 440,000 in the week ended Feb. 6.
The big drop in new claims, following a jump some weeks back, reflected the end of an administrative backlog in California. But the report contained signs of improvement. The four-week average of new claims, for instance, declined by 1,000 to 468,500. Four months ago, it was at 540,500.
"We continue to think that the underlying pace of layoffs is slowing and the labor market is gradually improving," RBS economist Omair Sharif said.
With joblessness at 9.7%, according to Labor's latest, January reading, the jobs market is a big obstruction in the economy's road to recovery. People either out of work or afraid of being laid off aren't spending so much. Consumer spending is vital to the economy; It makes up 70% of gross domestic product, the broad measure for U.S. economic activity. So the decreases in the Thursday data were welcome.
The Labor Department released the report even as severe winter weather shut down most of the nation's capital and the U.S. government. The crippling storm could contribute to high volatility in claims reports in coming weeks, with idled workers streaming into unemployment offices for benefits after being shutout this week due to the rotten weather.
Economists surveyed by Dow Jones Newswires had expected claims last week would slide by 12,000.
The tally of continuing claims, those drawn by workers collecting benefits for more than one week, in the week ended Jan. 30, fell by 79,000 to reach 4,538,000, the lowest level since the week of Jan. 3, 2009.
The unemployment rate for workers with unemployment insurance was unchanged at 3.5%.
Not adjusted to reflect seasonal fluctuations, Pennsylvania reported the largest jump in new claims during the Jan. 30 week due to an increase in layoffs in the construction, trade and service sectors. New Jersey reported the largest decrease due to fewer layoffs in trade and service industries.
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