Weekly initial jobless claims drop

The number of Americans filing initial claims for unemployment insurance payments fell less than forecast last week, indicating recovery in the labor market is taking time to accelerate.

Applications for jobless benefits fell by 44,000 in the week ended May 7 to 434,000, Labor Department figures showed Thursday. Economists had forecast 430,000 claims, according to a Bloomberg News survey.

A further decline in the number of firings accompanied by job gains elsewhere may shore up consumers' confidence and boost average incomes, helping Americans overcome the strains of higher food and energy costs. Payrolls have expanded for seven straight months, a sign the labor market is strengthening.

The number of people continuing to collect jobless benefits -- excluding those on extended benefits under federal programs -- rose by 5,000 in the week ended April 30 to 3.76 million. Economists had forecast the number would fall to 3.7 million.