WASHINGTON (AP) — The number of newly laid-off workers requesting unemployment benefits slipped last week, but remains above the level many economists say would signal new hiring.þþThe four-week average of claims, which smoothes volatility, rose to its highest level since November, reflecting a large increase in claims last month. þþ“The economy is struggling to finally transition back to sustained job growth,” Abiel Reinhart, an economist at JPMorgan Chase, wrote in a note to clients. The data “continues to indicate that a shift towards robust hiring has not yet arrived.” þþThe Labor Department said initial jobless claims fell by 6,000 to a seasonally adjusted 462,000. That nearly matches Wall Street analysts’ estimates and is the second straight decline. þþBut initial claims need to fall consistently below 425,000 to signal sustained job creation, economists say. The four-week average of claims rose to 475,500 last week, up from 470,500 a week earlier. þþThe four-week average has risen by about 25,000 since the beginning of the year, after falling for most of last year. The increase has raised concerns among economists that layoffs have not slowed as much as hoped. þþInitial claims are considered a gauge of the pace of layoffs and an indication of companies’ willingness to hire new workers. þþThe department also said on Thursday that the number of people continuing to claim jobless benefits rose by about 40,000, to 4.56 million. But these so-called continuing claims do not include millions of people who have used up their regular 26 weeks of benefits and are receiving extended benefits for up to 73 more weeks. þþNearly 5.7 million people were receiving extended benefits in the week that ended Feb. 20, down from about 5.9 million the previous week. þ
Source: NY Times
