Ahead Of The Bell: Jobless Claims

WASHINGTON (AP) — Wall Street economists expect the number of newly laid-off workers seeking unemployment benefits dropped last week, a sign the job market may be slowly improving.

A Labor Department report is projected to show new unemployment insurance claims fell to a seasonally adjusted 540,000 from 551,000 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.

Claims have been slowly declining since the spring, but remain well above the 325,000 that economists say is consistent with a healthy economy.

Initial claims jumped 17,000 to 551,000 two weeks ago, more than economists expected, after falling for three straight weeks. The four-week average of claims, which smooths out fluctuations, fell to 548,000, about 110,000 below its peak in early April.

Still, the pace of decline is slow and adds to many analysts' concerns that even if the economy is improving, it won't be fast enough to create jobs and lower the unemployment rate.