Initial Jobless Claims Down

Washington, DC, March 8, 2007--The number of workers filing for unemployment benefits fell by a seasonally adjusted 10,000 last week to 328,000, but the four-week average of new claims moved up to a 17-month high of 339,000, the Labor Department said Thursday.

The four-week average is considered a better gauge of underlying trends than the weekly number because it smoothes out one-time events, such as weather or holidays. The four-week average of new claims hasn't been higher since the aftermath of Hurricane Katrina in the fall of 2005.

The four-week average of new claims is up about 10% compared with a month ago.

The number of workers receiving unemployment checks fell by 98,000 to 2.53 million in the week ending Feb. 24. The insured unemployment rate -- the portion of all workers who are covered by unemployment insurance who are collecting benefits -- fell back to 1.9% from a cyclical high of 2%.

The four-week average of continuing claims inched higher to 2.55 million, however, the highest since January 2006.