Weekly Jobless Claims Off 12,000

Washington, DC, March 15, 2007--The number of Americans making initial applications for unemployment benefits fell by 12,000 last week to stand at 318,000, the lowest in five weeks, the Labor Department reported Thursday.

The four-week average of initial claims--considered a better gauge of underlying conditions in the labor market because it smoothes out temporary distortions such as weather or holidays--also fell, dropping by 10,250 to 329,250, after hitting a 17-month high of 339,500 the previous week.

There were no special factors affecting claims this past week, a Labor Department spokesman said.

The number of Americans collecting unemployment checks in the week ended March 3 increased by 48,000 to reach 2.58 million. The four-week average of continuing claims edged up by 5,500 to 2.56 million, the highest since January 2006.

The insured unemployment rate--the portion of all workers covered by unemployment insurance who are collecting benefits--climbed back to 2.0% from 1.9%. That matches the highest rate in this business cycle.