Sharp drop in first-time U.S. jobless claims

WASHINGTON - The number of newly laid-off workers seeking unemployment benefits fell more than expected last week to the lowest total in a month, a hopeful sign that the job market might be improving.

Skip to next paragraph The Labor Department said on Thursday that first-time claims for unemployment insurance fell last week by 43,000, to a seasonally adjusted 440,000. Wall Street economists expected a smaller decline of 15,000, according to a survey by Thomson Reuters. The four-week average of jobless claims fell by 1,000, to 468,500, the first decline after three weeks of increases. Many economists say the four-week average would need to fall consistently below 425,000 to signal that the economy will start generating net job gains.

The number of people claiming benefits for more than a week, meanwhile, fell by nearly 80,000, to 4.5 million, a steeper decline than expected. But the so-called continuing claims do not include millions of people who have used up the regular 26 weeks of benefits typically provided by states and are receiving extended benefits for up to 73 additional weeks, paid for by the federal government. (AP)