Jobless Claims Fall but Remain Above Key Level

Although the number of Americans filing initial applications for unemployment benefits declined by 28,000 last week, it remained above the key 400,000 level for the 12th week in a row, the longest stretch since 1992.

The Labor Department said Thusday intitial claims fell to 425,000, a drop of 34,000 since claims set a 13-month high of 459,000 in the week ended April 19. Many economists consider claims greater than 400,000 as signaling a weak job market, Bloomberg reported.

The persistent loss of jobs may undermine the economy by causing consumers to curtail spending, which accounts for about 70% all goods and services produced, Bloomberg reported.

The four-week moving average, a more accurate indicator of the labor market's health because it eliminates any volatility in the weekly data, rose 3,250 to 446,000 in week ended May 3. That is the highest level since the week of April 20, 2002.

Economists had estimated that claims would fall to 438,000 from the initially reported 448,000 a week earlier, Reuters reported.

The number of people continuing to collect benefits rose to 3.665 million in the week ended April 26, the highest in six months.

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