Applications for jobless benefits fall
Written on August 29, 2009
Fewer Americans filed claims for jobless benefits last week, another sign the economy is pulling out of the worst recession since the 1930s.
Applications fell by 10,000 to 570,000, a higher level than forecast, in the week ended Aug. 22 from a revised 580,000 the week before, the Labor Department said Thursday. The total number of people collecting unemployment insurance fell to the lowest level since April.
Job cuts are easing as government stimulus measures help stabilize the housing and manufacturing industries. At the same time, a rebound in hiring will take longer to occur, restraining the consumer spending that accounts for 70 percent of the economy.
"We’re definitely seeing firings slowing as firms are much leaner than they were earlier," said David Semmens, an economist at Standard Chartered Bank. "Any good news in the labor market provides a floor for consumer sentiment."
Economists forecast that claims would fall to 565,000 from a previously reported 576,000.
The report showed the four-week moving average of initial applications, a less volatile measure, dropped to 566,250 last week from 571,000.
Continuing claims plunged by 119,000 in the week ended Aug. 15 to 6.13 million, the least since the week ended April 4.
Filed in: finance.