The number of newly laid off workers filing for unemployment benefits unexpectedly fell last week to the lowest level in a month. The Labor Department reported Thursday that applications for jobless benefits totaled 365,000, down by 9,000 from last week. Economists had expected claims to rise slightly. Even with the unexpected decline, claims remain at a level that indicates the labor market is under stress from the sluggish economy. The four-week average for claims rose slightly to 372,250, up significantly from a year ago when the four-week average was around the 300,000 mark. Analysts predicted further increases in claims in the weeks ahead, reflecting an economy struggling to overcome a slumping housing market, a severe credit crunch and soaring gasoline prices.
See "Jobless claims drop to lowest level in 4 weeks", Martin Crutsinger, San Francisco Chronicle, May 21, 2008