Jobless claims fall to lowest level in 21 months

AP WorldStream via COMTEX ^ | 12-5-02

[Oldeconomybuyer]

WASHINGTON, Dec 05, 2002 (AP WorldStream via COMTEX) -- New claims for unemployment benefits plunged last week to their lowest level in 21 months, offering some cheer to workers as they head into the holiday shopping season.

The Labor Department reported Thursday that new applications for unemployment insurance fell by a seasonally adjusted 13,000 to 355,000, for the work week ending Nov. 30. The decline left claims at their lowest point since the week ending Feb. 17, 2001.

It marked the third week in a row that new claims for jobless benefits went down, good news for workers who have been feeling the strain of the uneven economic recovery for much of this year.

The latest snapshot of the labor market was much better than analysts were expecting. They were forecasting a rise in new claims.

While the Thanksgiving Day holiday - in which unemployment offices were closed - may have played a role in the decline of new claims last week, economists have noted that claims recently have been drifting lower, a positive sign.

In fact, the more stable four-week moving average of new claims, which smooths out week-to-week fluctuations, dropped to 376,500 last week, the lowest level since the week ending March 3, 2001.

Both the four-week moving average and initial claims have been below the 400,000 mark - a level associated with an extremely weak job market - for three straight weeks.

[B4Ranch]

I guess they follow the daily text in the financial pages too closely. When TSHTF maybe the media and the administration will comprehend it.

[Joe Hadenuf]

Maybe not. Those who exhausted their benefits are not counted as unemployed. Eliminate benefits completely and you will have ZERO benefits claims and ZERO unemployment.

Bingo!

Unfortunately.....

[BoomerBob]

Actually this report only measures new jobless claims and doesn't reflect whether people are dropping off as a result of running out of benefits or finding new employment. What the report shows is the pace of layoffs is slowing.