Ahead Of The Bell: Jobless Claims

WASHINGTON (AP) — The number of newly laid-off workers seeking unemployment benefits likely dropped slightly last week, evidence that the job market is slowly improving as the economy recovers from the worst recession since the 1930s.

A Labor Department report is projected to show new unemployment insurance claims dropped by 7,000 to a seasonally adjusted 523,000 last week, according to economists surveyed by Thomson Reuters. That would continue a downward trend that has seen claims drop in six of the past eight weeks.

The four-week average, which smooths out fluctuations, dropped to 526,250 last week. The eighth straight decline left claims about 132,000 below the peak reached this spring.

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

The unemployment benefit rolls, meanwhile, are expected to drop by about 50,000 to 5.7 million for the week ending Oct. 24. The figures on continuing claims lag initial claims by a week.

The report is due Thursday at 8:30 a.m. EST.