U.S. jobless claims lower than expected

The number of newly laid-off U.S. workers filing unemployment claims fell more than expected last week, further evidence the job market might be turning the corner.

There were 452,000 claims last week, a drop of 28,000 compared to the previous week on a seasonally adjusted basis, the U.S. Labour Department said Thursday.  

That's better than the 10,000-job decline to 470,000 that economists had been expecting.

The four-week average for claims fell to 465,250, the 16th consecutive weekly decline. Economists pay closer attention to the four-week average because it smooths out fluctuations, and its steady decline is an encouraging sign that the labour market is on the mend.

Jobless claims tend to indicate the pace of layoffs, and watchers say the level of new claims must get below 425,000 and stay there for several weeks to signal that the economy is actually adding jobs.

Both the four-week average and new-claims numbers are at their lowest levels since September 2008, when the financial crisis hit with full force.

U.S. unemployment claims have been falling unevenly since summer. Seasonal employment from holidays and other variables in the calendar made last week a difficult one to seasonally adjust, the Labour Department warned.

Total number of regular recipients drops

The total number of people continuing to receive regular jobless benefits fell by 127,000 to 5.08 million for the week ended Dec. 12. That figure does not include millions of people who have used up the 26 weeks of benefits they are entitled to under normal state programs and are now receiving extended benefits for up to 73 additional weeks, paid for by the federal government as part of its emergency stimulus measures earlier this year.

The number of people receiving extended benefits jumped to 4.37 million for the week ended Dec. 5, an increase of 141,807 from the previous week.

Thirty-eight states are now processing extended benefit claims that Congress approved last month.