New applications for US state jobless benefits dropped by 10,000 last week, but a more accurate barometer of labour market trends rose to its highest level in five years, the government said today.
Initial jobless claims for state unemployment insurance benefits fell to 385,000 in the week ended April 14th from a revised 395,000 in the prior week, the Labour Department said. This, however, was 123,000 more than a year ago.
Labor originally reported new claims at 392,000 for the week ended April 7th.
The number of new claims was marginally smaller than private economists' forecast for 387,000.
The closely watched four-week moving average, which irons out weekly fluctuations, rose for the third consecutive week to 382,250 in the week ended April 14th from 381,500 for the previous week. This was its highest level since 388,500 in the week of April 13th, 1996.
In the April 7th week, the latest week for which data are available, continued claims - the number of those who have already claimed a week of benefits - fell to 2,513,000 from a revised 2,560,000.
In a sign the pace of hiring has slowed, the number of continued claims remain at levels last seen a little more than four years ago when they measured 2,558,000 in early January 1997.
The department said 21 states reported an increase in claims of 1,000 or more in the week ended April 7th, led by Illinois. That state reported 5,336 additional claims centered in the automobile, construction, service, and other manufacturing industries.
In the same week, no states reported a decrease in claims of 1,000 or more.