Ahead Of The Bell: Jobless Claims

WASHINGTON (AP) — Wall Street economists expect the number of newly laid-off workers seeking unemployment benefits fell last week, an indication the labor market is slowly improving.

A Labor Department report is projected to show new unemployment insurance claims fell to a seasonally adjusted 560,000 from 570,000 the previous week, according to economists surveyed by Thomson Reuters.

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.

The four-week average of claims, which smooths out fluctuations, rose by 4,000 to 571,250 last week. Still, that's about 85,000 below the peak for the current recession in early April.

The total benefit rolls, meanwhile, are expected to drop by about 30,000 to 6.2 million. The figures on continuing claims lag initial claims by a week.