For the first time since January, the number of new unemployment claims fell last week to 601,000. The four week average ? a number that is often considered a better gauge of claims since it helps account for unusual events ? also dropped slightly. Some economists are speculating that the recession is bottoming out, with fewer layoffs and greater hiring ahead. This view may be overly optimistic however, since the number of continuing claims is still hitting record highs ? an indication that displaced workers are having a difficult time finding new jobs.
See "Initial jobless claims fall; record ongoing claims", Ruth Mantell, Market Watch, May 6, 2009