Weekly Jobless Claims Fall to the Lowest Level in Two Years

[Clio the Leo]

Jobless Claims Decline

By SARAH N. LYNCH And TOM BARKLEY

The number of U.S. workers filing new claims for unemployment benefits fell last week by more than economists expected, bucking the typical July trend as fewer factories were shuttered for the summer.

Separately, falling food and energy costs pushed down U.S. producer prices for a third straight month in June, while core prices remained tame. Price pressures deeper in the production pipeline posted big declines, as well.

In its weekly report Thursday, the Labor Department said the number of U.S. workers filing initial claims for jobless benefits decreased by 29,000 to 429,000 in the week ended July 10. That is the lowest level for claims since August 23, 2008 -- just as the financial crisis was nearing its height.

Economists surveyed by Dow Jones Newswires had expected claims would fall by 9,000.

The previous week's level was revised slightly upward, from 454,000 to 458,000. But the four-week moving average -- which aims to give a better idea of the trend by smoothing volatility in the data -- fell by 11,750 to 455,250 in the week ended July 10. The prior week's average was revised to 467,000.

Claims lasting more than one week, meanwhile, jumped in the week ended July 3 to reverse declines posted in the prior week.

Although claims in July typically tend to rise as factories shut down for part of the summer, analysts widely expected to see big declines in the July 10 data after General Motors Co. announced plans to keep most of its plants open for the season.

A Labor Department economist said Thursday, however, that GM is not the only driving force behind the large decline.

"This was not just a GM thing," he said. "We saw this across a number of different states." He added that more data on this will be available next week.

http://online.wsj.com/article/SB10001424052748704682604575368762377480660.html

[Stuart G]

1. Good News Here...nt K and R

[impik]

2. Bad news. Terrible.

[KeyWester]

3. Yep...

sliding deeper and deeper into the depression.

[impik]

4. As you can see by people unreccing good news. Hilarious

[formercia]

5. Companies have run out of people to fire.

All I see is a great pool of potential scab workers.

[HughMoran]

6. Let's hope this is the beginning of a trend

There is still time to get this looking OK for this falls elections.

[girl gone mad]

7. "Claims lasting more than one week, meanwhile, jumped in the week ended July 3.."

Unrevised number = horrible.. last week was only 4 days.. think the odd celebration on display here is a bit premature.

[BklnDem75]

8. Unlike premature outrage?

I know I'd rather have one than the other.

[girl gone mad]

11. Not sure who is outraged..

but with unemployment lingering in the double digits and no real proposal to address this serious crisis, after witnessing a multi-trillion unfettered bailout of the corrupt and predatory banking industry, with leadership now determined to refocus attention onto a fictional deficit crisis, the emotion certainly wouldn't be premature.

[HughMoran]

14. "lingering in the double digits"

At least be honest.

[BklnDem75]

20. Seems you're outraged

You show concern for the unemployed then complain about the bailouts which kept that number of unemployed from skyrocketing. You do understand it's not just the banks that would have fallen right? You understand there's quite a number of businesses that depends on these banks? You can't complain about unemployment numbers while ignoring the domino effect not having the bailout would have caused.

[Jakes Progress]

10. Party Pooper.

You just had to go in there with some reality, didn't you. Just when all those people with jobs were trying to feel less guilty.

So if they want to party when a temporary glitch in the numbers can be taken as a celebration, will they also join in the mourning and anger when the real numbers come in?

[HughMoran]

12. hate

inc.

[AngryAmish]

9. All is well, then.

[HughMoran]

13. Useful comment

[Politics_Guy25]

16. People don't want the economy to get better and people to have jobs

It takes away something to bash President Obama over the head with and their political aims are far more important to them. I've never seen a recession where people so desperately do not want it to end because they know it'd be good news for a president they despise.

I for one am overjoyed by this best report in 2 years. K and R.

[Yavin4]

15. It Means That There Are Less and Less Layoffs

Which is a very positive sign that expansion, though limited, is happening.

[Arkana]

17. Yeah, but that's because they fell off the rolls after the goddamn Senate jammed up a UI extension.

Watch--they'll jump again after the extension is passed.

[Phx_Dem]

18. Oh shit. That's bad.

I'm not sure why, but I'll try to think up a reason.

[Tarheel_Dem]

19. How the heck did I miss this? Kick.....(nt)