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U.S. jobless claims fall to 5-week low

03 November 2011 23:58 (UTC +04:00)

Baku-APA. New applications for unemployment benefits in the U.S. last week fell to the lowest level in the past five weeks, Labor Department figures showed Thursday, signaling progress in the labor market, APA reports.

Initial jobless claims amounted to 397,000 in the week ending Oct. 29, down from a revised 406,000 claims in the previous week, said the latest unemployment insurance weekly claims report.

The reading of weekly initial jobless claims went down below 40, 000 again since Sept. 24, the third time in six months, but the number will have to fall to 375,000 or below to signal a sustained drop in the unemployment rate. The Federal Reserve Wednesday predicted the unemployment rate to keep at 9.0 percent to 9.1 percent in 2011, and 8.5 percent to 8.7 percent in 2012.

The four-week moving average, which helps to smooth out week-to- week volatility, also declined to 404,500, down 2,000 from the previous week.

The advance figure for seasonally adjusted insured unemployment during the week ending Oct. 22 was 3.68 million, a decrease of 15, 000 from one week earlier.

Economists said the trend remained very constructive, but it had to keep the momentum before strengthening the labor market.

In addition, U.S. private sector saw 110,000 more jobs in October, driven all by the service-providing sector, said the National Employment Report released Wednesday by Automatic Data Processing, Inc.

The weekly figures of jobless benefits application reflect the level of layoffs and indicate real-time condition of American job market.