New jobless claims fall to 521K, lowest since Jan.
| October 8, 2009 | Posted by admin under DECODE - Assess/Plan |
New jobless claims fall to 521K, lowest since Jan.
By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer – 8 mins ago
WASHINGTON – The number of newly laid-off workers filing first-time claims for jobless benefits fell to the lowest level since early January, as layoffs eased a bit amid a fledgling economic recovery.
The fourth drop in new claims in five weeks is a sign the labor market is slowly healing. But employers are reluctant to hire new workers and the unemployment rate is expected to keep climbing well into next year.
Separately, the nation’s retailers saw modest signs of life from consumers in September, resulting in the first sales gain since July 2008 and fueling some hope for the holiday shopping season.
The Labor Department said Thursday that new claims for unemployment insurance dropped last week to a seasonally adjusted 521,000, better than analysts expected and down from 554,000 the previous week.
The four-week average, which smooths fluctuations, fell to 539,750, the lowest since Jan. 17. The number of people continuing to claim benefits declined by 72,000 to 6.04 million. Analysts expected continuing claims to rise slightly.
“The downtrend in claims is encouraging and points to continued, albeit gradual, improvement in the labor market,” Joseph LaVorgna, chief U.S. economist at Deutsche Bank, wrote in a note to clients.
Economists closely watch initial claims, which are considered a gauge of layoffs and an indication of companies’ willingness to hire new workers.
Despite the improvement, initial claims remain well above the 325,000 that economists say is consistent with a healthy economy.
Meanwhile, a late Labor Day and delayed school openings helped boost back-to-school sales in September. The International Council of Shopping Centers-Goldman Sachs preliminary tally registered an increase of 0.1 percent for September, compared with a 1 percent drop a year ago. While still tepid, the results mark the first gain since July 2008, when the index rose 1.3 percent.
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