Jobless claims fall sharply
The search for jobs goes on. Krish Kilaru, left, speaks with a recruiter at the University of Illinois Technology booth during a job fair in Springfield, Ill. The line of those looking for work was long. (Sept. 1, 2011) Credit: AP
The number of Americans seeking unemployment benefits fell sharply last week, more than economists had forecast.
Weekly applications dropped 37,000 to a seasonally adjusted 391,000 in the week ended Sept. 24, the Labor Department said Thursday. That's the lowest level since April 2 and the first time applications have fallen below 400,000 since Aug. 6. The four-week average, a less volatile measure, fell to 417,000, the first drop in six weeks.
Bloomberg New said that economists had expected 420,000 claims, according to the median estimate in a Bloomberg News survey. The business news agency also reported the drop could be attributed to an atypical calendar alignment that made it more difficult for the government to adjust the data for seasonal changes.
However, the pace of firings has remained little changed this year while companies are reluctant to hire at a time when the economy is slowing.
Applications typically need to fall below 375,000 to signal substantial job growth. They haven't been that low since February.
