WASHINGTON (AP) -- The number of laid-off workers filing claims for unemployment benefits fell last week by the sharpest amount in nearly two months, indicating a healthy labor market despite the sluggish economy.þþThe Labor Department reported Thursday that applications for jobless benefits totaled 321,000 last week, 20,000 fewer than the previous week.þþThat was the biggest decline in claims in nine weeks and was more than double what economists expected. Analysts said part of the improvement reflected trouble adjusting the weekly claims data around Easter, which does not fall in the same week every year.þþIt was the second straight weekly decline after the claims data had hit a two-month high, a jump blamed on seasonal adjustment problems around Easter.þþThe number of laid-off workers receiving unemployment benefits totaled 2.59 million for the week ending April 14. That was the highest level since the week of Feb. 17.þþThe economy has grown at sub-par rates for the past year. But that weakness has not led to widespread layoffs, in part because consumer demand has stayed strong despite the troubles in housing and parts of manufacturing.þþMany analysts believe the jobless rate will start rising slightly in the coming months because of the sluggish economy and a slowdown in corporate earnings.þþThe government planned a Friday release of its first estimate of economic growth in the January-March quarter.þþAnalysts expected that report would show the gross domestic product was growing at an annual rate of just 1.8 percent, the weakest since late 2005 when the country struggled in the aftermath of Hurricane Katrina.þþWall Street took a breather on Thursday, one day after the Dow Jones industrial averaged closed above the 13,000-point level for the first time. The Dow finished the day up 15.61 points at 13,105.50, its 36th record close since the start of October.þþEven in the midst of the yearlong economic slowdown, the unemployment rate dipped in March to 4.4 percent, matching a five-year low, as employers boosted hiring by 180,000 workers.þþThe combination of weak growth and low unemployment has surprised economists. They had expected the jobless rate to be rising at this point, following a script written by the Federal Reserve. The central bank pushed interest rates up for two straight years in an effort to slow the economy enough to take pressures off inflation.þþThe Fed has not changed rates since June. It is expected to remain on hold at its next meeting, May 9, as Fed officials continue to signal that their biggest worry is whether inflation will slow enough.þþFor the week ending April 14, the seasonally adjusted claims figure dropped by 2,000. A total of 37 states and territories reported decreases in claims while 16 states had increases.þþThe state with the largest increase was New York, which reported a jump of 16,037 claim filings, which it attributed to higher layoffs in transportation, trade, services and public administration. Other states and territories with big increases were New Jersey, up 2,943, and Puerto Rico, up 1,880.þþThe state with the biggest decline in claims was California, a drop of 5,309, which was attributed to fewer layoffs in service industries. Other big declines occurred in Pennsylvania, down 5,150, and Illinois, down 3,319.þþThe state figures, unlike the national data, are not adjusted for seasonal variations.þþ
Source: NY Times
