Jobless claims at lowest level since 2000
WASHINGTON —The number of new people signing up for jobless benefits dropped last week to the lowest level in more than three years, a potentially encouraging sign for a labor market experiencing a bumpy recovery.
The Labor Department reported Thursday that new applications for unemployment insurance plunged by a seasonally adjusted 39,000 to 310,000 for the week ending July 3. That marked the best showing since Oct. 8, 2000. The latest snapshot of the layoffs climate was better than economists were expecting. They were forecasting claims to decline to around 345,000.
Still, last week’s decline was exaggerated by seasonal adjustment difficulties related to temporary closings of auto plants for annual retooling for new model cars, a Labor Department analyst cautioned. The figures ended up being adjusted for auto plant closings, which take place each summer. Although some closings took place last week, bigger companies weren’t expected to start their temporary shutdowns until the following week, the analyst said.
In other economic news, sales at the nation’s largest retailers were mixed in June. Wal-Mart Stores Inc. and other stores reported disappointing sales as unseasonably cool weather and higher gas prices stifled business. But J.C. Penney Co. Inc. and Limited Brands were among the merchants whose sales reports met or beat analyst expectations.
“Lackluster sales in June had retailers feeling a little cautious,” said National Retail Federation President Tracy Mullin. “We expect to see a rebound in July as summer clearance sales pick up and the beginning of the back-to-school season gets into gear.”
In financial markets, stocks moved lower. The Dow Jones industrials lost 68 points and the Nasdaq was off 30 points Thursday.
On the unemployment front, the four-week moving average of new claims dropped last week by a seasonally adjusted 10,250 to 336,000. That marked the lowest level since May 22.
“Underneath it all, this report suggests the economy is expanding and is creating jobs,” said Richard Yamarone, economist at Argus Research Corp.