WASHINGTON — First-time claims for state unemployment benefits fell more than expected last week, dropping below the important 400,000 level for the first time since April, according to a government report on Thursday.þþJobless claims dropped 24,000, to a seasonally adjusted 398,000, the Labor Department said.þþThe drop below the 400,000 level that is normally associated with stable job growth will be welcome news for the economy after a recent string of weak data. Employment growth stumbled badly in May and June, with the increase in nonfarm payrolls totaling only 43,000.þþEconomists had forecast that claims would fall to 415,000. The prior week’s figure was revised to 422,000 from 418,000.þþThe government is expected to report on Friday that the economy grew at a 1.8 percent annual rate, according to a Reuters survey, after a tepid 1.9 percent pace in the first three months of the year.þþOn Wednesday, the Federal Reserve said growth had slowed in much of the country in June and early July.þþA Labor Department official said there were no special factors in last week’s jobless claims data.þþThe four-week moving average of claims, considered a better measure of labor market trends, fell 8,500, to 413,750.þþA total of 7.65 million people were claiming unemployment benefits in the week ended July 9 under all programs, up 320,152 from the previous week.þ
Source: NY Times
