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HomeeconomyClaims dip as new year begins, raising hopes for economy

Claims dip as new year begins, raising hopes for economy

The number of Americans filing new claims for unemployment benefits fell for a second week last week, suggesting labor market conditions continue to steadily improve.

Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 339,000, the Labor Department said on Thursday. Claims for the prior week were revised to show 3,000 more applications received than previously reported.

The four-week moving average for new claims rose 8,500 to 357,250 as the holiday-related volatility lingers.

A Labor Department analyst said no states had been estimated. While claims data continue to be plagued by seasonal volatility, there has been an acceleration in job growth.

Against the backdrop of a firming jobs market and brightening economic outlook, the Federal Reserve in December announced it would reduce its monthly $85 billion bond buying program by $10 billion starting this month.

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The claims report showed the number of people still receiving benefits under regular state programs after an initial week of aid fell 98,000 to 2.83 million in the week ended Dec. 21.

Benefits for more than a million long-term unemployed Americans expired on Dec. 28, which could see a sharp decline in the total number of people receiving benefits under all programs from 4.46 million in the week ended Dec 14.

–By Reuters


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