Initial Jobless Claims Show Stressed Labor Market

Washington, DC, Aug. 14, 2008--Initial jobless claims fell by 10,000 last week but remained at levels that show labor markets under pressure, acording to the Labor Department.

The Labor Department said on Thursday initial claims for state unemployment insurance benefits dipped to a seasonally adjusted 450,000 in the week ended Aug. 9 from an upwardly revised 460,000 in the prior week. That was still well above the 432,000 claims level that economists had forecast.

But a four-week moving average of new jobless claims climbed to 440,500 last week from 421,000 the week before. That was the highest reading in more than six years, since it hit 445,500 in April 2002.

Most economists consider a reading above 400,000 for weekly claims as indicating recession-like conditions. New-claim filings have topped 400,000 for each of the past four weeks.