Labor Market Turns a Corner: New Jobless Claims Fall to 18-Month Low, Lowest Since July 2008
1. The number of people filing new claims for unemployment benefits in the U.S. unexpectedly fell in the latest week to its lowest level in 18 months, a sign the labor market may be turning a corner. Initial claims for unemployment benefits fell by 22,000 to a seasonally adjusted 432,000 in the week ended Dec. 26, the lowest level since July 19, 2008. Economists surveyed by Dow Jones Newswires had forecast claims would rise by 3,000.
2. Meantime, the Labor Department said in its weekly report Thursday that the number of people collecting jobless benefits for more than a week also continued to decline.The tally of continuing claims, or those drawn by workers collecting benefits for more than one week, fell by 57,000 to 4,981,000 in the week ended Dec. 19.
3. The four-week average of new claims, which aims to smooth volatility in the data, dropped by 5,500 to 460,250 -- marking its 17th consecutive drop. That was the lowest level since Sep. 20, 2008 (see chart above).
Wall Street Journal