New Jobless Claims Lower Than Expected

Washington, DC, July 14, 2011 -- New applications for unemployment benefits fell last week to the lowest level in three months, according to the Labor Department.

Initial claims dropped 22,000 to a seasonally adjusted 405,000 in the week ended July 9, and that’s the smallest amount since mid-April.

Economists expected new requests to total 420,000. Claims in the prior week were revised up to 427,000 from an original reading of 418,000.

The average of new claims over the past four weeks dropped 3,750 to 423,250.

The decline in last week’s claims would have been even steeper if not for a government shutdown in Minnesota triggered by a budget standoff. Minnesota said 11,500 state workers filed applications for jobless benefits last week.