Jobless Claims Drop to Lowest Level in 40 Weeks

WASHINGTON (Reuters) - The number of U.S. workers filing new claims for jobless benefits dipped by 1,000 last week, while the number collecting long-term aid fell to the lowest reading in seven months as the job market steadied. Another key gauge of underlying labor market health, the 4-week moving average for new claims, decreased by 6,000 to 526,250, which was the smallest reading since January.

The 4-week moving average of 526,250 is now 132,500 below the early April peak of 658,750, and has dropped to the lowest level since January 17, a 40-week low.

Comments

[bigbear4511:]

People who have been claiming long term aid have run out of their jobless benefits and now have nothing. that is why the number has dropped. More problems for main street.

Oct 30 04:18 AM

[AxIt:]

It looks that's getting better but veeeeery slowly. 132k less in seven months and still 526k to go. Moving on at this pace it would require more then two years to merely break even. I can't blame the disappointment I hear everywhere. Let's hope to see more substantial drops in claims when corporations will return to a growth and start hiring istead than continue firing (beacuse this will happen... I hope).

Oct 30 07:21 AM

[cato:]

The title of the article and the graph are both misleading (deliberately, perhaps?). You have to read the text to find the truth.

"Jobless claims" have NOT dropped. "NEW jobless claims" have dropped. There's a big difference.

You're not talking about unemployment itself..... or even the 1st derivative of unemployment -- you're talking about the 2nd derivative.

Oct 30 07:23 AM

[mrdirt:]

I agree, Bigbear4511,

Most of the "journalists" are trying to put good news spin to the numbers,
using phrases like "less bad", "declining at a slower rate". Of course the numbers will go down, how many more people can be laidoff, companies
are living with fewer employees to meet or beat their qtry earnings numbers.

Wait until the Mega Mergers in big Pharma takes its toll. Mrk/Sgp, Pfe/Wyeth,
possible 30k+ to be let go. Eli Lilly, moving jobs overseas, Astra Zeneca to let
go 1k reps. Initial Claims still over 500k, continuing claims numbers will increase when extension of benefits is signed and put back on unemployment
rolls.
If retail sales (excluding gasoline) fail to deliver during upcoming Christmas season, look for more layoffs.

Oct 30 07:29 AM