Washington, DC, Nov. 20--The number of workers filing first-time applications for unemployment benefits fell unexpectedly last week, another encouraging sign for the battered labor market.
Initial jobless claims decreased by 15,000 to 355,000 in the week that ended Saturday, the Labor Department said Thursday. The four-week average, which smooths out weekly fluctuations, fell by 9,000 to 367,250, a 33-month low.
Economists had expected claims to increase by 4,000, according to a survey by Dow Jones and CNBC.
The claims figure for the previous week was revised to 370,000 from an initial estimate of 366,000. For seven straight weeks, claims have been below 400,000, a level economists associate with a stabilizing labor market.
The labor market has lost millions of jobs over the past three years but economists consider the worst of the layoffs over. Jobless claims peaked at 459,000 in the middle of April and have slowly drifted downward, though employers have been reluctant to make substantial additions to work forces until they are convinced a recovery is underway.
The sizzling 7.2% growth in the third quarter helped boost business confidence, but economists say that, even as the economy grows, it will still take time for the labor market to fully turn around. And, some say, an influx of job seekers motivated by an improved economic climate could cause the unemployment rate to rise in the months ahead if job creation isn't strong enough.
The number of workers drawing unemployment benefits for more than a week rose by 21,000 to 3,497,000 in the week that ended Nov. 8, the latest period for which those statistics are available.
In all, the Labor Department said, 47 states and territories reported an increase in unadjusted initial claims for the week of Nov. 8, while six reported a decrease. California reported the biggest increase amid layoffs in the construction and service industries, and agriculture.
