Initial Jobless Claims [3/4/2010]

WASHINGTON, March 4 (Reuters) – The number of U.S. workers filing new
applications for unemployment insurance fell as expected last week, a
government report showed on Thursday, while those continuing to receive
benefits dropped to the lowest level in over a year.
Initial claims for state unemployment benefits dropped 29,000 to a
seasonally adjusted 469,000 in the week ended Feb. 27, down from an upwardly
revised 498,000 the prior week, the Labor Department said.
Analysts polled by Reuters had expected claims to drop to 470,000 from a
previously reported 496,000 the prior week. Initial claims data in recent weeks
has been distorted by bad weather, making it difficult to gauge the labor
market trend.
A Labor Department official said there were no special factors affecting
last weeks data.
Severe snowstorms hammered much of the country last month, bringing some
areas to a standstill and keeping some workers at home. The bad weather will be
a drag on the closely watched employment report for February, scheduled for
release on Friday, analysts said.
The labor market is being anxiously watched to determine whether the
economy’s recovery from the worst downturn since the 1930s will be sustained
when support from government stimulus and the rebuilding of inventories fade
later this year.
The economy has lost 8.4 million jobs since the start of the downturn in
December 2007, but the pace of layoffs has dropped sharply from early last
year.
The four-week moving average of new claims, which irons out week-to-week
volatility, fell 3,500 to 470,750, the Labor Department said.
The number of people still receiving benefits after an initial week of aid
dropped 134,000 to 4.5 million in the week ended Feb. 20, the lowest since
early January 2009. This measure peaked in June last year and has been
steadily declining.
The insured unemployment rate, which measures the percentage of the insured
labor force that is jobless, slipped to 3.5 percent in the week ended Feb. 20
from 3.6 percent.
(Reporting by Lucia Mutikani; Editing by Neil Stempleman)
((lucia.mutikani@thomsonreuters.com; Tel: 202 898 8315; Reuters messaging:
lucia.mutikani.reuters.com@reuters.net))