DJ US Jobless Claims -34K To 303K In Jul 16 Wk; Survey -11K
07/21/2005
Dow Jones News Services
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07-21-05 0829ET
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*DJ US Jul 16 Week Continuing Claims -41K to 2,577,000
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07-21-05 0829ET
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*DJ US Jul 9 Week Jobless Claims Revised To 337K From 336K
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07-21-05 0829ET
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DJ US Jobless Claims -34K To 303K July 16 Week; Survey -11K
By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--New claims filed by U.S. workers for unemployment benefits made their biggest drop in more than two years last week following a period of heavy automobile industry layoffs.
Initial jobless claims decreased by 34,000 to a seasonally adjusted 303,000 in the week that ended July 16, the Labor Department said Thursday. The four-week average fell to 318,000 from 321,250.
Wall Street expected a smaller decrease. The median estimate of 16 economists surveyed by Dow Jones Newswires and CNBC was for new claims to have declined by 11,000 to 325,000 last week.
The drop was the sharpest since claims fell by 35,000 the week of Dec. 21, 2002, a Labor Department statistician said. Also, it was the lowest level of claims since filings fell to 299,000 the week of April 16 this year.
Economists say weekly claims below 350,000 usually indicate moderate job growth. In June, U.S. employers boosted hiring. Non-farm payrolls grew by 146,000 jobs last month. Over the past year through June, the monthly average of job growth was 171,500.
The 34,000-claim drop last week followed an increase the prior week attributed to auto industry layoffs. During the week of July 9, initial claims rose by 16,000 to a revised 337,000. Originally, Labor reported claims climbed by 16,000 to 336,000. Revisions are routine.
The automobile industry closes factories in early summer and makes adjustments required to produce new models of cars and trucks. The annual plant retooling triggers layoffs, elevating jobless claims.
In all, 43 states and territories reported an increase in unadjusted initial claims for the week of July 9, while 10 reported a decrease, Labor said Thursday. Data for last week are not yet available.
Michigan reported the biggest increase, saying claims rose by 27,496 because of layoffs in the auto and transportation equipment industries. New Jersey reported the biggest decrease - a drop of 3,633 that it attributed to fewer layoffs in the transportation, warehousing, trade and service industries.
The Labor Department said the number of workers drawing unemployment benefits for more than a week fell in the week that ended July 9, the latest period for which data are available.
That number - known as continuing claims - declined by 41,000 to 2,577,000. The jobless rate for workers with unemployment insurance decreased to 2.0%.
-By Jeff Bater; Dow Jones Newswires; 202-862-6616; jeff.bater@dowjones.com
(END) Dow Jones Newswires
07-21-05 0830ET
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