US jobless claims fell 20,000 last week

27 Apr, 2007

The number of US workers filing new claims for jobless benefits fell a much bigger-than-expected 20,000 last week, a Labour Department report showed on Thursday. Initial filings for state unemployment insurance aid slipped to 321,000 in the week ended April 21 from an upwardly revised 341,000 for the previous week, the government said.
There were no special factors behind the drop in new claims, a Labour Department analyst told reporters. Analysts polled by Reuters were expecting claims to ease by 9,000 to 330,000 from the previously reported 339,000 in the week ended April 14.
A four-week moving average of claims, which smooths weekly volatility to provide a better sense of underlying job-market trends, rose to 332,000 from a revised 329,250 a week earlier. It was the highest level for the four-week moving average since the week ending March 3.
The total number of unemployed people still on the benefit rolls after drawing an initial week of aid rose unexpectedly to 2.59 million from 2.53 million in the previous week. Analysts were expecting continuing claims to hold steady. "This week's data support the view that the labour market remains healthy," economists at Action Economics said in a note.
Among states with the largest increases in jobless claims were New York, with a gain of 16,037, and New Jersey, with a rise of 2,943. The report, which can provide a rough guide to the pace of layoffs, comes as the Federal Reserve remains concerned that a tight labour market could add to inflation pressures.
The Fed's Beige Book summary of economic conditions, released on Wednesday, reported some regions experiencing wage increases as employers stretched to find and keep skilled workers. The Labour Department next week releases its April payrolls survey, which should provide a fuller picture of the US employment situation.

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