WASHINGTON, Feb 10 (Reuters) – New U.S. claims for unemployment benefits
dropped more than expected last week to touch their lowest point in 2-1/2
years, a government report showed on Thursday, offering assurance that the
labor market was strengthening despite January’s poor jobs numbers.
Initial claims for state unemployment benefits fell 36,000 to a seasonally
adjusted 383,000, the lowest since early July 2008, the Labor Department said.
Economists polled by Reuters had forecast claims slipping to 410,000. The
prior week’s figure was revised up to 419,000, from the previously reported
415,000.
The data, coming on the heels of Friday’s report showing the economy
created a paltry 36,000 jobs in January, added to other employment indicators
that have pointed to a gain in momentum in the labor market.
Initial claims breached the 400,000 mark and economists say a sustained
move below that level would signal strong job growth.
A Labor Department official said claims were still unwinding some of the
weather effects that pushed up applications last month.
The four-week moving average of unemployment claims — a better measure of
underlying trends – dropped 16,000 to 415,500 last week.
The number of people still receiving benefits under regular state programs
after an initial week of aid declined 47,000 to 3.89 million in the week ended
Jan. 29 from an upwardly revised 3.94 million the prior week.
Economists had expected so-called continuing claims to fall to 3.90 million
from a previously reported 3.93 million.
The number of people on emergency unemployment benefits increased 100,366
to 3.76 million in the week ended Jan. 22, the latest week for which data is
available. A total of 9.4 million people were claiming unemployment benefits
during that period under all programs.