Jobless Claims Lowest Since March 2001
biz.yahoo.com
Wednesday July 3, 9:19 am Eastern Time
Reuters Business Report
Jobless Claims Lowest Since March 2001
By Nancy Waitz
WASHINGTON (Reuters) - U.S. initial jobless claims fell for
the second straight week last week to their lowest level in 15
months, the government said on Wednesday in a report suggesting
a slower pace of layoffs while the economy is slowly
recovering.
New claims for unemployment insurance -- a rough guide to
the pace of job cuts -- dropped by 11,000 in the week ended
June 29 to 382,000, down from a revised 393,000 in the prior
week and the lowest since 380,000 in the week ending March 24,
2001, the Labor Department said.
The number of initial claims fell more steeply than Wall
Street expectations for a drop to 387,000 from the original
Labor Department measure of 388,000 in the June 22 week.
Over the past four weeks, new claims have averaged 392,000.
That level was down for the tenth consecutive week from 392,250
in the previous week, and the lowest since 390,750 in the week
ending March 2, 2002.
Economists keep a closer watch on the four-week moving
average because it is considered a more reliable indicator of
the job market's health.
While the weekly jobless claims number gives a more current
look at labor market conditions, Friday's comprehensive
payrolls report will garner closer attention from the Federal
Reserve as it weighs its next move on interest rates.
Most economists expect policymakers at the U.S. central
bank will leave interest rates unchanged at four-decade lows
until deep in the autumn amid questions about the strength of
the economic recovery.
On July 5, the Labor Department will release its employment
report for June, which will give a broad look at labor market
conditions throughout the economy.
The unemployment rate for June is expected to edge up to
5.9 percent from 5.8 percent in May while the economy was
expected to have created 86,000 jobs outside the farm sector.
In May, nonfarm payrolls rose 41,000.
The number of corporate layoffs in the pipeline, seen as
another key barometer of labor conditions, rose in June, the
employment outplacement tracking firm Challenger, Gray and
Christmas said on Tuesday.
Until there is a sustained rise in payrolls and the
unemployment rate starts to turn lower, economists believe
there is little chance the Fed will start raising rates.
In a sign people are still struggling to find work, Labor
the number of so-called "continued claims" those drawing more
than a week of benefits rose to 3.7 million in the week ended
June 22 -- the latest week for which figures are available --
12,000 more than the previous week. |
