Ahead Of The Bell: Jobless Claims

WASHINGTON (AP) — Economists expect the number of newly laid-off workers seeking unemployment benefits fell slightly last week as job cuts continue to slowly decline.

Still, many economists worry the nation could be in for a "jobless recovery" as the unemployment rises despite some overall economic growth in the third quarter.

A Labor Department report is projected to show new unemployment insurance claims dropped by 2,000 to a seasonally adjusted 510,000 last week, according to economists surveyed by Thomson Reuters. That would be the lowest total since early January.

Claims have declined since this spring. The four-week average, which smooths out fluctuations, fell to 523,750 last week, its ninth straight drop and about 135,000 below the peak reached in early April.

Economists closely watch initial claims, which are considered a gauge of layoffs and an indication of companies' willingness to hire new workers. Many analysts estimate that claims will need to fall to roughly 450,000 to signal that the economy is adding jobs.

The number of people continuing to claim benefits, meanwhile, is expected to drop by about 50,000 to 5.7 million for the week ending Oct. 31. The figures on continuing claims lag initial claims by a week.