Jobless claims unexpectedly fall in latest week
WASHINGTON (Reuters) - The number of U.S. workers filing initial claims for jobless benefits unexpectedly fell 9,000 last week, the government said on Thursday, while the overall number of workers on the benefit rolls held at a four-year high.
First-time claims for state unemployment insurance benefits fell to a seasonally adjusted 365,000 last week from a revised 374,000 for the prior week, the Labor Department said. The filings were the lowest since mid-April, but remained at elevated levels, underscoring a sluggish jobs market.
Analysts had expected new claims to edge up to 375,000 from the originally reported 371,000 for the week ended May 10.
Prices for U.S. Treasury securities slipped after the surprise drop in jobless claims data hinted that the weak labor market may be stabilizing, while the dollar extended gains against the yen and euro.
"Over the next few months claims should climb toward the 400,000 mark, as companies seek to control costs in the face of persistent very soft demand," said Ian Shepherdson, chief U.S. economist for High Frequency Economics in Valhalla, New York.
"Expect volatility over the next couple of weeks as a result of Memorial Day seasonals, and then look for claims to spike in early July," said Shepherdson.
The four-week average of new jobless claims, a more reliable guide to underlying labor trends because it irons out weekly volatility, rose to 372,250 last week from 367,250 in the previous week.
The number of workers remaining on the benefit rolls was unchanged at 3.073 million in the week ended May 10, the latest period for which figures were available. Analysts were expecting the so-called continued claims at 3.05 million.
The last time continued claims stood at this level was the week ended March 20, 2004, when they measured 3.072 million.
Despite holding steady for the week, continued claims have been trending higher and the number remains above the 3 million mark for the fourth straight week, underscoring the difficulties people are having finding jobs.
(Additional reporting by Steven C. Johnson and Richard Leong in New York)
(Reporting by Nancy Waitz; Editing by Neil Stempleman)
