Weekly Jobless Claims Fall To Almost A Four-Year Low; Biggest Drop Since 2005

WASHINGTON, Jan 19 (Reuters) - New U.S. applications for unemployment benefits dropped to a near four-year low last week, a government report on Thursday showed, pointing to continued improvement in the labor market.

The Labor Department said initial claims for state unemployment benefits dropped 50,000 to 352,000, the lowest level since April 2008 and the biggest drop since September 2005. The prior claims data was revised up to 402,000 from the previously reported 399,000.

Economists polled by Reuters had expected claims to fall only to 385,000. Last week's claims data covered the survey period for January nonfarm payrolls and claims dropped by 14,000 between the December and January survey periods.

Payrolls increased 200,000 in December, with the unemployment rate dropping to 8.5 percent.

A Labor Department official said claims for six states, including California and Virginia, had been estimated owing to the Martin Luther King holiday on Monday. He said there was nothing unusual in the unadjusted data, which showed a sharp decline in claims.

The four-week moving average of claims, considered to be a better measure of labor market trends, dropped 3,500 to 379,000 last week.

The number of unemployed workers still collecting benefits after an initial week aid fell 215,000 to 3.43 million - the lowest since September 2008. (Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Comments

[IBNN NEWS]

05:29 AM on 01/22/2012

Don't be an idiot. Unemployment is not "down." This is propaganda distributed on behalf of the US government without telling all the facts. Of course unemployment "looks" down, but then again, the workforce has shrunk tremendously. In other words, "Don't tell me its sunny and warm, and I step out into a -10 degree blizzard.

[graffitijoe]

05:55 PM on 01/21/2012

"A Labor Department official said claims for six states, including California and Virginia, had been estimated owing to the Martin Luther King holiday on Monday."

...so ...this is just an estimate and an article is being written about how good things are getting ...based on an estimate?

Okay.

[Josh Crawford]

04:48 AM on 01/22/2012

Seriously? That's your best critique of these numbers? Wow, talk about "grasping at straws"! Why can't you accept that this is GOO NEWS? You may not like it because it makes it less likely that the GOP will win the White House in the fall, but can't you even admit that things ARE GETTING BETTER? And have been for over two years now? Pathetic....

[Josh Crawford]

05:03 PM on 01/21/2012

More good news for ALL Americans...unless you're a GOP politician up for (re)election this fall!!!

[Josh Crawford]

04:55 PM on 01/21/2012

So, where are all the stooges and naysayers from last week crowing about the uptick in new unemployment claims and saying how we are still doomed?

I guess they crawled back under their respective rocks. Hopefully they'll stay there!

[grf67]

03:03 PM on 01/21/2012

The repubs will begin to panic soon.

[Judie Vc]

01:43 AM on 02/09/2012

Soon? They've been in panic mode for days now, weeks actually.

[David Hundley]

09:47 AM on 01/21/2012

The Government likes to think they know what's going on in this country. In fact, if you are not tethered to them in some sort of way, you just don't get counted. They need to report that a lot of young women are destroying their lives by prostituting for money. It is a shame, that seems to be the only way they feel they can survive. The more people out of work, the more people get desparate.

[nopilikia]

01:06 AM on 01/21/2012

Must be those new jobs created by the "job creating machine" top .001% kicking in. Sorry...couldn't help myself.

[plaidsportcoat]

10:15 PM on 01/20/2012

Aw come ON.
How many people are unemployed and not receiving unemployment bennies and not able to find work? You're just pretending they don't exist?

[laser focused]

07:56 AM on 01/21/2012

after those "bennies" went away, they were more inclined to take a job. thats how it works. the handouts ended and they needed money.

[cay12]

10:49 AM on 01/21/2012

Did you read his post? The question was how many people are now "unemployed" but not receiving unemployment benefits. Not how many people are now "employed" and not receiving unemployment benefits.

Basing the unemployment rate on those receiving unemployment benefits is deceptive at best. It does not include those still unemployed but no longer receiving benefits or those who are underemployed and not receiving benefits.

[mxfw9999]

08:53 PM on 01/20/2012

I guess people finally realize that 8 dollars is a great hourly pay. Theycan feed their family and pay for their health insurance and save for retirement. It is about time people woke up and stoped sitting at home

[laser focused]

07:57 AM on 01/21/2012

whose getting 8 an hour? no one I know.

[mxfw9999]

12:14 PM on 01/21/2012

So they are making more than 8. That means they can pay their own healthcare . and place money in retirement fund and have plenty left over each year

[lulubelle1956]

08:11 PM on 01/20/2012

Thank you president Obama for reversing the hemorrhaging of jobs that occurred from 2000-2008 and for growing jobs in the economy. To the GOP/tp: start packing your suitcases.

[sco8d]

06:54 PM on 01/20/2012

If the number drops under 8% before November Obama does a cakewalk back in to the White house.

[Josh Crawford]

04:57 PM on 01/21/2012

Even if it doesn't, he's still looking good...

[Frank David Nall]

06:37 PM on 01/20/2012

There is a finite amount of people, even in the U>S .........why the hell is this news?

[Josh Crawford]

04:57 PM on 01/21/2012

What are you talking about? If you don't understand why this is news, then you simply don't understand....

[LAURIE IMHAUSER]

04:34 PM on 01/20/2012

Some here are "insinuating" that the Republican House helped the unemployment "down-turn". That is BS. This is an election year. The main concern on Main Street has been jobs. The reason anything is getting done right now is because Congresses' approval rating is so low that Obama looks like a 2 term president AND the Congress may be overhauled- almost entirely. There's nothing like a looming election to make EVERYBODY give a little bit. Wall St. still has most of the clout, but the politicians need to ACT like they care about the 99%. Maybe that is why Regan appeared to be a good president- especially to the Republicans. After all, he was a professional actor.

I hope Obama grows a backbone and can accomplish what he has been trying to do.I believe he wants to do the right thing.

[welcome to Bushville]

01:54 PM on 01/20/2012

thanks for cleaning up the Bush mess Obama. Obama will go down in the top 5 on the presidents list after his second term is done

[David Hundley]

09:52 AM on 01/21/2012

http://www.ronpaul.com/2012-01-20/ron-paul-highlights-at-the-cnn-southern-republican-debate/
Not, if he can't stop the money flowing out of this country. The Afgan War costs 2 million dollars an hour. The interest on the debt is 2 Billion dollars a week. And, I'm Broke....Obama

[Josh Crawford]

05:00 PM on 01/21/2012

Of course you're from Texas. The heart of ignorance!
A) Afghan War: STARTED BY CHENEY/BUSH.
B) Interest payments: basically ALL as the result of debt that Obama inherited (including $6 trillion from WBush).
You really don't understand how our government works, do you? Shocker, you being from Texas and all.......

[donk970]

12:18 PM on 01/20/2012

I wish they would stop reporting unemployment claims; that's such a misleading number. They really need to report the percent of actual employable population that shows up on the normal IRS reporting. Also adjust the number for percent of poverty level income for each person. If you make less than poverty line you count as some fraction of an employed person. If you make more you count as one person.