Initial Jobless Claims Drop But Remain High
New claims for unemployment benefits dropped sharply last week, but they have yet to reach levels that most economists say would signal strong job creation.
The Labor Department says that requests for jobless aid dropped by 21,000 to a seasonally adjusted 454,000. Economists polled by Thomson Reuters predicted a smaller drop.
The decline takes claims to their lowest level since early May, erasing the increases of the last two months. But claims have fluctuated in recent weeks, establishing no clear trend. They have remained stuck near 450,000 all year, after dropping steadily last year from a peak of 651,000 in March 2009.
The tally of people continuing to claim benefits plunged by
224,000 to 4.4 million.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
