Jobless claims dip, spending up in sign of rebound

In a hopeful sign for the economy, the number of newly laid-off workers filing claims for unemployment benefits fell below 500,000 last week for the first time since January. Consumer spending also picked up in October, and new-home sales hit their highest point in more than a year. Combined, the news suggested that the economy should be able to sustain at least a modest rebound. Some economists have worried that the economy was at risk of slipping back into recession. The number of people filing first-time claims for jobless aid fell by 35,000 to 466,000, the Labor Department says. That was the fewest since September of last year. And it was far better than the 500,000 economists had expected. Still, analysts noted that jobless claims would have to drop to near 400,000 for several weeks to signal actual growth in employment. Economists estimate the economy will lose a net 145,000 jobs this month. It would have to add 125,000 jobs a month just to keep the unemployment rate from rising.