Washington, DC, January 11, 2007--Weekly jobless claims fell to their lowest level since late July, the Labor Department said Thursday. First-time applications for state unemployment benefits fell by 26,000 to 299,000 in the week ending January 6, the Labor Department said Thursday. This is the lowest level since the week ended July 22.
The four-week average of new claims dropped by 1,750 to 314,750, the lowest since the week ended November 11.
The previous week's initial claims were revised to 325,000 from 329,000.
The number of new claims was well below forecast. Analysts had been expecting jobless claims to fall to 320,000 in the week ending January 6.
Economists said the report was strong, but were cautious to read too much into it.
The number of people collecting unemployment benefits fell by 3,000 to 2.43 million in the week ended December 30. It's the lowest level of continuing claims since the week ended October 21.
The four-week moving average of continuing claims--which smoothes out distortions like weather and strikes and is considered a more accurate indicator--fell by 11,500 to 2.43 million, the lowest level since December 2.
The insured unemployment rate, or the percentage of those eligible for benefits who are collecting, remained at 1.9%.
Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new jobs.
