Month-Average Jobless Claims Fall To Lowest Level Since July 2008

(Reuters) - New U.S. claims for unemployment benefits fell as expected last week, with the four-week moving average dropping to its lowest level in more than 2-1/2 years, pointing to a strengthening labor market.

Initial claims for state unemployment benefits fell 16,000 to a seasonally adjusted 385,000, the Labor Department said.

Economists polled by Reuters had forecast claims falling to 387,000. The prior week's figure was revised up to 401,000 from the previously reported 397,000.

The four-week moving average of unemployment claims -- a better measure of underlying trends - dropped 7,000 to 386,250, the lowest since mid-July 2008 and staying below the 400,000 level for a third straight week.

The claims data covered the survey period for the government's closely watched employment report for March and offered more signs the labor market recovery was gaining traction. Employers added 192,000 jobs in February, the most in nine months.

The Federal Reserve on Tuesday said the economy was on "firmer footing" with the labor market improving gradually. It also dropped a reference it had used in a statement in January to employers remaining reluctant to add to payrolls.

A Labor Department official said there were no unusual factors affecting the report.

The number of people still receiving benefits under regular state programs after an initial week of aid dropped 80,000 to 3.71 million in the week ended March 5, the lowest level since September 2008.

Economists had expected so-called continuing claims to fall to 3.75 million from a previously reported 3.77 million.

The number of people on emergency unemployment benefits declined 58,580 to 3.54 million in the week ended February 26, the latest week for which data is available. A total of 8.95 million people were claiming unemployment benefits during that period under all programs.

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[fortressfountain]

08:58 AM on 03/27/2011

A better indicator of what happens after unemployment runs out would be to look at food stamp and welfare roles. I bet all of them are going up and not down.
If there were a lot of jobs and a true recovery all government aide would be decreasing.

[Jim deim]

06:17 PM on 03/20/2011

The problem with UI stats is it doesn't tell the true picture. First sure UI claims are dropping but still way over new jobs being added to employee them. So still adding more to UI with new claims then people finding jobs. The real reason UI % is dropping is 99ers dropping off UI after 99 weeks. Millions still did not find jobs as there are millions more jobs need to prevent that. So as millions of people drop off UI no longer getting checks and still unemployed but not counted anymore that makes UI rate way understated. If they do give extension over 99 weeks the UI rate shoot way up again.

[TabaskoKat]

12:51 AM on 03/27/2011

that 99er stuff is garbage. at least in my state of oregon. its 72 weeks but they still try and call it 99. the media is woefully out of context and very disingenuos about the whole unemployment issue. if the numbers (as some have estimated they really are) where talked about openly obama would have a huge problem and for that matter so should the repubs that ran on creating jobs, but some leftist economists would have you believe that the real unemployment number is 17%

[SaneThoughts]

01:41 PM on 03/19/2011

Long term unemployed just drop out of the system. Lets just strikeout the line in the Constitution where is say's "Promote the general welfare" because were on our own thanks to Republicanism.

[mogens]

04:22 PM on 03/18/2011

It is the percentage of people in jobs, that is interresting.
That shows the real development.
Unemployment rates are calculated differently around the world, but it is not possible to fiddle with the number of employed or self-employed.

[AG creative]

02:56 PM on 03/18/2011

This sounds strangely like... [dare I say] GOOD news?

[ThePeacemakers]

01:38 PM on 03/18/2011

Claims fell? Did anyone check the morgues?

[irochfpst]

12:02 AM on 03/18/2011

lets report numbers that really sound good rather than number that reflect the truth. how many people believe there is no inflation? let's call it what it is-LYING!

[Genders]

11:58 PM on 03/17/2011

Yeah, more 99'er fell off the cliff: http://portalseven.com/employment/unemployment_rate_u6.jsp
16% U6 unemployment. get real.

[vippy]

06:26 PM on 03/17/2011

There will be a time when we run out of people claiming unemployment because they no longer qualify and jobs are not appearing.  Everywhere I go I hear sad stories of employees, who got laid off and now the states, being short on money, are really opening the flood gates and firing people left and right. 

[jtabs]

06:14 PM on 03/17/2011

Unemployed people no longer eligible for unemployment rises again.

[demilieu]

03:22 PM on 03/17/2011

Companies have let go of so many people and are operating with small crews. If the work load picks up, existing staff work longer to catch up. Only a long-term surge in demand will motivate businesses to take on new workers. Three years into it and we are still asking, where are the jobs?

[ema123]

03:28 PM on 03/17/2011

This is more an indicator that peoples unemployment benefits have run out.

[moose and squirrel]

03:45 PM on 03/17/2011

i think its time to reevaluate that position:  whereas it was certainly true 6 months ago, it is clear today that some in the unemployed ranks have gone back to work. 

[avg american]

02:52 PM on 03/17/2011

The unemployment numbers are getting worse and the government won't publish the true unemployment #'s because if we really knew the truth, there would be rioting in the streets.


Save your pennies, folks. The economists are pushing the agenda that the economy is getting better so that you will spend your money on more junk that you don't need so that big corp america can make more money off of us before they crash the economy again.

The economy is not getting better. Unemployment is not getting better.
The economists and politicians are suborning a lie to pacify Americans.

[vippy]

06:28 PM on 03/17/2011

Too bad we have so many STUPID people who cannot see further than the tip of their nose.  I am sure if they look around where they are they see how many people are losing or lost their jobs and kids are moving back home.  Of course, that is kept out of the media, because who wants NEGATIVE news, and we have to keep up the 10% unemployment for the world or they will recognize us as being incompetent, which we really are.  Throw both parties out of office for not one of them having done anything to promote the middle class. 

[avg american]

07:27 PM on 03/17/2011

Yep.. fanned and fav'ed...

There is a part of me that has contempt for people that sit on their behinds, hypnotized by the boobtube while their neighbors lose their jobs, homes and health and they can't be bothered to vote or to make a call or to protest?

I am sure that their neighbors thought that it wouldn't happen to them either.

[MrStat1]

10:13 PM on 03/17/2011

I decide if what I buy is junk or not. I don't need you telling me what to buy!

[coolfireone]

02:50 PM on 03/17/2011

Unemployment filed claims and the number of unemployed are not synonymous. In the official news release there is not mention of those unemployed more than one year, many of whom have stopped receiving benefits from their states, those who have given up looking, and those who have remained unemployed for 99 months, and are dropped from the count. Do what you want with statistics. Anything can be "proven." However, it is an error to believe that the gov't report reflects reality.

[Grlnxdor]

03:14 PM on 03/17/2011

It reflects reality in the same way that if you looked at a microbe under an electron microscope you could see the tiniest of bacterium moving forward. That would certainly have to called forward motion. However, the latest jobless claim numbers are indicative of the fact that....read it carefully....not as many people are being laid off. Now I guess we could say this was forward motion at a microscopic level....but even so, I think I would have to say that in a race, the bacteria would still be winning.

[ema123]

03:29 PM on 03/17/2011

thats right it just indicated more peoples' benefits have run out.

[Easy420forMe]

02:47 PM on 03/17/2011

that socialist stimulus... dag nabbit....

[Gnommie]

02:47 PM on 03/17/2011

Gallup says from their random sampling of 18000 folks nationwide... results have a plus or minus 1% sampling error factor.. In addition to this sampling error....they say the wording of interviews with folks over the phone may vary...and other practical difficulties may introduce additional error levels.

So does that 1percentage point sampling error factor mean unemployment could range from 9.3% to 11.3%....or ...from 10.2% to 10.4%?

Also....Gallup's February job creation index hit a high not seen since 2008. Here they say they see improvement.

[Grlnxdor]

02:59 PM on 03/17/2011

Sampling error is the equivalent of standard deviation. You use standard deviation to describe the possible error of a sample. I surveyed 100 people and my possibility of an error is 1%. You use sampling error to describe the possible error of multiple samples. I surveyed 100 different people, on 10 different occasions and my possibility of error is 1%. I would need more information regarding what Gallup is using as their mean rate of unemployment of the population, and the mean rate of their sample of 18,000 people to tell you what the answer was.

[avg american]

03:09 PM on 03/17/2011

Does that include people with cell phones? and what about people who do not have phones?

[ema123]

03:30 PM on 03/17/2011

Like the unemployed who cant afford a phone anymore

[Clifford Deuvall]

05:49 PM on 03/17/2011

One must remember, when establishing an unemployment rate, one only includes people that are activly seeking employment, and registered with the local unemployment office,. It is the only way the stats can be produced. Those out there looking for a job, but not on, or have applied for, unemployment are not counted. Now, think about how many peoople are actually unemployed.