Initial Jobless Claims Fall More Than Expected

Washington, DC, June 19, 2008--Initial jobless claims fell last week, signaling that at least for now the softening in the labor market isn't getting worse, according to the Labor Department.

Initial jobless claims fell 5,000 to 381,000 in the week ended June 14, from a revised 386,000 the prior week. The total number of people collecting benefits dropped 76,000 to 3.06 million for the week ended June 7.

Export orders and demand for machinery are prompting some companies to hold on to workers even as the extended slump in housing, higher fuel prices and credit restrictions argue against increasing staff.

Economists had forecast claims would fall to 375,000, from  384,000 a week earlier.

The four-week moving average for initial claims, a less volatile measure, increased to 375,250 from 372,000.

The unemployment rate among people eligible for benefits, which tends to track the U.S. jobless rate, dropped to 2.3 percent from 2.4 percent.