Ahead Of The Bell: Jobless Claims

WASHINGTON (AP) — Government data are expected to show that new claims for jobless benefits grew last week while the total number of people receiving unemployment insurance set a record for the 13th straight week.

The Labor Department's tally of new jobless claims is forecast to rise to a seasonally adjusted 645,000 from the previous week's 640,000, according to a survey of Wall Street economists by Thomson Reuters. Continuing claims, meanwhile, are forecast to jump to 6.2 million from nearly 6.14 million. That would be the highest total on records dating to 1967.

The four-week average of claims, which smooths out volatility, dropped slightly last week to 646,750, about 12,000 below the peak in early April. Goldman Sachs economists have said a decline of 30,000 to 40,000 in the four-week average is needed to signal a peak.

The new report is scheduled to be released Thursday at 8:30 a.m. EDT.

The high level of continuing claims is a sign that many laid-off workers are having difficulty finding work.

Employers have cut 5.1 million jobs since the recession began in December 2007, slashing costs as consumers and businesses have sharply reduced spending. The department said earlier this month that companies cut a net total of 663,000 jobs in March, sending the unemployment rate to 8.5 percent, the highest in 25 years.