First-time jobless claims data hints at new hiring

WASHINGTON - November marked a two-year low for the number of people applying for initial unemployment benefits, suggesting that the tight job market may be easing at last.

The slowing of layoffs and a solid month for retailers are the latest evidence of a strengthening economy in the final months of the year. Even the struggling housing market showed signs of improvement: On Thursday it posted a third straight monthly increase in signed contracts for home purchases.

Some economists are now sketching a more optimistic forecast for Friday's report on November employment, though few expect a change in the 9.6 percent unemployment rate.

"We are starting to get some self-sustaining momentum in the economy," said Nigel Gault, chief U.S. economist at IHS Global Insight.

The number of people applying for unemployment benefits actually rose last week, by 26,000 to a seasonally adjusted 436,000, the Labor Department said Thursday. Still, the figures are often volatile during the weeks around the Veteran's Day and Thanksgiving holidays.

A more telling figure was a decline in the four-week moving average of claims, which smooths volatility. That fell to 431,000 - a two-year low.

"After being little changed for most of the year, new jobless claims have broken to the downside in the last several weeks, suggesting that labor markets may actually be improving," said Steven Wood, chief economist for Insight Economics.

Still, even if the optimistic job projections for November prove accurate, they won't be strong enough to drive down the unemployment rate. Most economists think the jobless rate will be unchanged in November. That would mark the 19th straight month that the unemployment rate topped 9 percent, the longest stretch on records going back to 1948.

Stores reported sales gains in November that topped Wall Street expectations included Costco Wholesale Corp., Target Corp., the owner of Victoria's Secret and teen retailer Abercrombie & Fitch. The results are boosting hopes that shoppers will spend more during the holiday season.

The International Council of Shopping Centers' index reported a 5.8 percent gain. It marked the biggest increase since March when a quirk of the Easter calendar resulted in a 9 percent gain. Aside from that month, the last time retailers reported such a big increase was in September 2006, when it registered 6.2 percent increase. - AP