U.S. jobless claims decline by 6,000

The number of Americans filing initial claims for jobless benefits declined by 6,000 for the second week in a row.

There were 472,000 initial jobless claims in the week ended Aug. 21, the U.S. Department of Labour said Thursday.

The four-week moving average was 485,500, a decline of 2,500. Economists pay closer attention to the four-week figure as it smooths out fluctuations.

After declining through much of 2010 from a peak of 651,000 in March 2009, jobless claims unexpectedly started to spike in late July, crossing the 500,000 level again. Economists say the number must get below 425,000 and stay there before assuming the U.S. economy is actually adding jobs.

The number of people continuing to claim benefits fell by 23,000 to 4.46 million, the lowest since late June.

But that doesn't include millions of people who are receiving extended benefits under emergency programs enacted by Congress during the recession. More than 5.4 million people were on the extended benefit rolls during the week of Aug. 14, the latest data available.

During the recession, Congress added up to 73 weeks of emergency aid on top of the 26 weeks typically provided by the states. Partisan bickering caused the program to lapse in June, throwing nearly two million people off the rolls.

But Congress renewed the program in July and more than two million Americans have returned to the system since then.