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 14th straight week.

The Labor Department's tally of new jobless claims is forecast to rise to a seasonally adjusted 635,000 from the previous week's 631,000, according to a survey of Wall Street economists by Thomson Reuters. Continuing claims, meanwhile, are forecast to jump to 6.36 million from 6.27 million. That would be the highest total on records dating to 1967.

The four-week moving average of initial jobless claims, which smooths out volatility, dropped last week to 637,250. That was the lowest level since late February and a decrease of about 20,000 from the high 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.

If new jobless claims come in below 630,000 that would be viewed as a pleasant surprise and would suggest that weekly layoffs — while still high — are slowly tapering off. But if they spike above 650,000, doubts will surface about the timing of the recovery.