WASHINGTON (AP) — The number of people on the unemployment insurance rolls fell slightly last week for the first time in 20 weeks, and the tally of new jobless claims also dipped, the government said Thursday.þþThe report provides a glimmer of good news for job seekers, though both declines were small and the figures remain significantly above the levels associated with a healthy economy.þþThe Labor Department said the tally of first-time claims for jobless benefits dropped to a seasonally adjusted 621,000 from the previous week’s revised figure of 625,000, nearly matching analysts’ expectations.þþThe total jobless benefit rolls fell by 15,000 to 6.7 million, the first decline since early January. Continuing claims had set record highs every week since the week ending Jan. 24. The continuing claims data lags behind initial claims by one week.þþStill, the number of initial claims remains stubbornly high, above the 605,000 level reached five weeks ago. That was the lowest level in 14 weeks.þþThe four-week average of claims, which smoothes out fluctuations, rose by 4,000 to 631,250.þþThe report comes a day before the department is scheduled to release its unemployment report for May. Economists expect that report will show employers cut a net total of 520,000 jobs last month.þþThe unemployment rate, meanwhile, will rise to 9.2 percent from 8.9 percent in April, analysts forecast.þþInitial claims are still below the peak for the current recession of 674,000 in late March. Among the states, Illinois had the largest increase in claims, with 3,881, which it attributed to layoffs in the manufacturing and service industries. The next largest increases were in Iowa, South Carolina, Texas and Wisconsin. The state data lags behind initial claims by a week.þþNorth Carolina had the largest drop in claims, 3,952, which it attributed to fewer layoffs in construction, furniture and transportation. The next largest decreases were in Michigan, Ohio, Tennessee and Connecticut.þþThe department also said workers were more productive in the first quarter than previously estimated, as companies made do with fewer employees because of rapid layoffs.þþProductivity, the amount of output per hour worked, rose at a seasonally adjusted annual rate of 1.6 percent in the January to March period, the department said, double the government’s estimate last month.þþLabor costs rose 3 percent, down from the government’s previous measure of 3.3 percent. A rapid increase in labor costs could feed inflation, but most economists are not worried about rising prices, as the recession is keeping a lid on wage demands.þþ
Source: NY Times