New U.S. jobless claims fall unexpectedly to 457K

The tally of newly laid-off workers seeking unemployment benefits fell unexpectedly for the fifth straight week, a hopeful sign that the job market is slowly improving. Still, claims remain above the levels that most analysts say would be consistent with an economy that is adding jobs. The unemployment rate is at 10.2% and expected to keep climbing into next year. First-time claims for unemployment insurance dropped by 5,000 to a seasonally adjusted 457,000, the lowest total since the week of Sept. 6, 2008, the Labor Department said Thursday. Wall Street economists expected an increase, according to a survey by Thomson Reuters. A Labor Department analyst said the closing of state unemployment offices for last week’s Thanksgiving holiday was responsible for some of the decline. Economists closely watch initial claims, which are considered a gauge of layoffs and a sign of whether companies are willing to hire. Many economists say that claims need to fall to about 425,000 for at least a month to signal that employers are adding jobs. The nation’s economy has lost jobs for 22 straight months.