U.S. Jobless Claims Decline to Lowest Since July 2008

U.S. Jobless Claims Decline to Lowest Since July 2008

Jobless claims declined by 34,000 to 407,000 in the week ended Nov. 20, Labor Department figures showed today in Washington. The median projection of economists surveyed by Bloomberg News called for a drop to 435,000. The total number of people receiving unemployment insurance decreased to the lowest in two years, and those on extended payments also fell.

Fewer firings lay the groundwork for a pickup in job creation that will generate incomes and spur consumer spending, which accounts for 70 percent of the economy. Even with companies firing fewer workers, unemployment will be slow to decline, according to the Federal Reserve’s latest forecast in which policy makers also lowered their growth projections.

“The labor market is clearly improving,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “We’re seeing consistent job gains in the private sector. This suggests we’ll have a good holiday spending season.”