New jobless claims fell to 470,000 last week. That’s better than the week before, when jobless claims hit around 478,0000.
Analysts had expected last week’s claims to drop by far more, all the way down to 450,000.
While a drop in jobless claims is always welcome in this economy, but it’s going to take a lot more than this to make a material impact.
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AP: The number of new claims for unemployment benefits fell less than expected last week, fresh evidence the job market remains a weak spot in the economic recovery.
The Labor Department says first-time jobless claims dropped by 8,000 to a seasonally adjusted 470,000. Analysts had expected a steeper drop to 450,000.
The four week average, which smooths out volatility, rose for the second straight week to 456,250. The average had fallen for 19 straight weeks before starting to rise. That decline that had given some analysts hope the economy would soon generate net job gains.
Economists closely watch initial claims, which are considered a gauge of the pace of layoffs and an indication of companies’ willingness to hire new workers.
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