Labor Says Weekly Jobless Claims Fell More-Than-Expected, But Prior Week Revised Up

The Labor Department reported Thursday that first-time weekly jobless claims for unemployment benefits unexpectedly fell last week, while the prior week was revised up 2,000 more applications than previously reported.

Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 287,000 in the week ending Sept. 27, while economists polled by Reuters had forecast claims rising to 297,000 last week.

Claims have fallen steadily since the nation emerged from the 2007-09 recession and are currently lower than they were before the country’s economic crisis began. However, many economists note that eligibility is shrinking along with the labor market, as chronically low labor force participation rates and employment-to-population ratios show there are too many long-term unemployed workers to keep the rolling average up.

The four-week moving average of claims, which is widely considered to be a better gauge of labor market conditions because it irons out week-to-week volatility, also fell 4,250 to 294,750.

The Labor Department said there were no special factors influencing the state level data.

The data has no bearing on the government’s September jobs report to be released Friday, a well-scrutinized Bureau of Labor Statistic monthly employment report, because the hiring survey was conducted earlier in the month. Economists expect companies stepped up the pace of hiring last month, adding 215,000 workers to payrolls. While the number is above 200,000, it is still shy of the 250,000 jobs needed to keep pace with population growth.

The jobless claims report showed the number of people still receiving benefits after an initial week of aid dropped 45,000 to 2.40 million in the week ended Sept. 20.