Jobless Claims Fall to Lowest Level Since Mid-February

WASHINGTON -- New U.S. claims for state unemployment benefits fell sharply last week, the fourth decline in five weeks, providing further evidence that the pace of layoffs has slowed after months of steep job cuts. Initial claims for state jobless benefits tumbled 34,000 to 601,000 in the week ended May 2, the Labor Department said in a weekly report Thursday. That's the lowest level since late January. Wall Street economists had expected a 4,000 rise, according to a Dow Jones Newswires survey.

The four-week average -- which aims to smooth volatility -- slid for a fourth-straight week, by 14,750 to 623,500, the lowest since mid-February (see chart above).

On a monthly basis, there was a decline of 35,250 claims (four-week moving average) from early April to early May. Going back to 1987, there have only been 16 times when the monthly decline in jobless claims was greater, and 9 of those 16 times were towards the end of, or following, the 1990-1991 recession and the 2001 recession.

Comments

[conceptwizard:]

The real number to be worried about is the following.

Ah. So the number the market "liked" was down 10,750, but the truth is that 133,000 more people lost their jobs than found one last week. That's very bad news; those are real people who can't pay their bills and are unable to find a new job to replace the one they lost.

Its all in the interpretation.

May 07 10:14 AM

[PastTense:]

If you look at the total number of jobless people, that number continues to steadily increase.

May 07 10:18 AM

[Prudent Man...:]

Instead of an impacted wisdom tooth we need "root canal". That sure should make someone who is unemployed or underemployed happy as well as the many industries that have excess capacity.

As this is your father's recession this won't be your father's recovery. Where have the $20+ Trillion, with a T, unsecured, toxic derivatives gone? The regulators changed the rules so the banking industry can show profits. Just what we need more financial engineering by bureaucrats.

Nothing like "feel good" denial to suck the foolish money managers into bad investments because they fear missing a move. It will be interesting to see how the second quarter earnings come out.

The DJIA should be called the Cemetery Index as it is the home of dead companies.

May 07 10:31 AM

[OperativeWord:]

9 out of 16? Not exactly significant data here Mark.

May 07 12:55 PM

[CLH:]

The worst is over but people are still frightened and the govt. will use these fears to strap us into more social projects.

May 10 08:29 AM