New Jobless Claims And Total Benefit Rolls Drop

CHRISTOPHER S. RUGABER

WASHINGTON (AP) — The number of newly laid-off workers filing claims for jobless benefits dropped last week, and the number of people remaining on the rolls also fell, evidence that layoffs have eased.

Still, both figures remain above levels associated with a healthy economy, and analysts expect the unemployment rate to keep rising.

The Labor Department said Thursday that first-time unemployment claims fell to a seasonally-adjusted 570,000, down from an upwardly revised figure of 580,000 the previous week. Analysts expected a slightly larger drop to 565,000, according to Thomson Reuters.

The tally of those continuing to claim benefits dropped to 6.13 million from 6.25 million in the previous week, the lowest level since early April. The figures on continuing claims lag initial claims by a week.

Economists closely watch initial claims, which are considered a gauge of layoffs and an indication of companies' willingness to hire new workers.

While the figures are volatile, first-time claims have trended downward in recent months. Initial claims topped 600,000 for most of this year, until falling below that level in early July.