U.S. Jobless Claims Fall; Four-Week Moving Average at Lowest Level in 7 Years
WASHINGTON--New applications for unemployment benefits fell again last week, a fresh sign of an improving labor market.</br></br>Initial claims for jobless aid decreased by 3,000 to a seasonally adjusted 302,000 in the week ended July 12, the Labor Department said Thursday. That was the second lowest reading so far this year and was below the 310,000 new claims forecast by economists surveyed by The Wall Street Journal.</br></br>The four-week moving average of claims, which smooths out weekly volatility, fell by 3,000 to 309,000, its lowest level in seven years. A year ago, this measure stood at 345,000.</br></br>"The improvement has been substantial," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.</br></br>Jobless claims traditionally jump this time of year because of temporary layoffs at auto-manufacturing plants, so the Labor Department adjusts the data in order to give a better picture of the underlying trend of layoffs. Auto makers traditionally halt production at some factories in the first half of July to prepare for model year changeovers.