Jobless Claims Drop 12,000 In Latest Week

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The number of people filing first-time unemployment claims slipped again last week, indicating that layoffs are continuing to ease.

Still, other data suggest that people are continuing to have problems finding new jobs once they have been laid off. While firings are continuing to slow, signs are that hiring remains sluggish.

The U.S. Labor Department revealed that initial jobless claims came in at 545,000 for the week ended September 12. This was down 12,000 from the previous week's revised total.

Economists had expected claims to rise to about 575,000.

The claims total marked the lowest level since July, but if seasonal distortions related to auto companies are excluded, the result is actually the lowest mark since January.

The 4-week moving average for initial claims, a statistic that flattens out week-to-week fluctuations in the data, slipped 8,750 to 563,000. This underlines the fact that the longer-term trend lately has been for lower claims figures

Continuing claims, which measures the number of people receiving ongoing unemployment help, rose 129,000 to 6.23 million.

"Bottom line, the data continues to reflect that the pace of firing is moderating but the pace of hiring still remains sluggish," Peter Boockvar, managing director and equity strategist for Miller Tabak + Co., said in a note.

He explained that the number of people getting emergency unemployment compensation because their 26 weeks of payments has run out climbed 22,000 and reached another high. This means that while fewer people are getting laid off, those out of work are still having problems finding a new job.

(Market News Provided by RTTNews)