Weekly Jobless Benefits Claims Fall to 415,000

WASHINGTON--Thenumberofpeopleapplyingforunemploymentbenefitsplungedlastweek,reversingaspikefromthepreviousweeklargelycausedbyharshwinterweather.

Applicationsforbenefitsdroppedby42,000toaseasonallyadjusted415,000intheweekendingJan.29,theLaborDepartmentsaidThursday.TheyhadsurgedinthepreviousweekaftersnowstormsintheSouthdisruptedworkandledtotemporarylayoffs.

Applicationsarewellbelowtheirpeakof651,000,reachedinMarch2009,whentheeconomywasdeepinrecession.Fewerthan425,000peopleapplyingforbenefitsisconsistentwithmodestjobgrowth.Butapplicationswillneedtofallconsistentlybelow375,000tosignalalikelydeclineintheunemploymentrate.

Lastweek'sdeclineresumesadownwardtrendthattookshapelatelastyear.Thefour-weekaverage,alessvolatilemeasure,fellsteadilyinthelastthreemonthsof2010toatwo-yearlowof411,250intheweekendingJan.1.Thatraisedhopesthatemployers,operatingwithleanworkforces,wouldsoonstepuphiring.

TheaverageroseinJanuary,mostlybecauseofseasonalfactors,suchastheharshweatherandthelayoffoftemporaryholidayemployees.Theaveragetickeduplastweekby1,000to430,500.ManyeconomistsconsiderdatainJanuarytobelessreliablebecauseofseasonalfluctuations.

Unemploymentapplicationsreflecttheleveloflayoffs,butcanalsoindicatewhethercompaniesarewillingtohire.

Despitethedeclineinunemploymentbenefitapplications,employershavebeenslowtoaddjobs.

Onefactorholdingbackjobgainsisthatworkersarebecomingincreasinglyefficientandproductive.Thatenablescompaniestoproducemorewithouthiringmoreworkers.

InaseparatereportThursday,theLaborDepartmentsaidthatproductivity,theamountofoutputperhourworked,rose3.6percentin2010,thebiggestincreasesince2002.