Initial Jobless Claims at Six-Month Low

Washington, DC, July 9, 2009--Initial jobless claims fell to a six-month low in the latest weekly data, after seasonal adjustment, while continuing claims hit a record high, the Labor Department reported Thursday.

The number of initial claims in the week ending July 4 fell 52,000 to 565,000 - the lowest level since January - as the manufacturing layoffs, predominantly automotive, that had been expected have already occurred at some companies, according to the Labor Department. The department added that some seasonally expected layoffs may come later or not at all.

Analysts expect several more weeks of volatility in the claims data due to layoff-timing issues.

While substantial declines in initial claims suggest to some that the peak of job losses has passed, the jobless claims report shows that it continues to be hard to find a replacement job. Further, another 2.5 million are collecting extended federal benefits, which kick in once a person has exhausted eligibility for the state checks, usually after six months.