Initial Jobless Claims Drop Unexpectedly

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WASHINGTON (May 28) - The government says the tally of newly laid-off people seeking jobless benefits fell last week, a sign that companies are cutting fewer workers.

The Labor Department reports that the number of initial claims for unemployment insurance dropped to a seasonally adjusted 623,000, from a revised figure of 636,000 in the previous week. That was below analysts' expectations of 635,000.

Auto-related layoffs elevated the claims numbers in recent weeks, but a Labor Department analyst said no states cited job cuts in that sector this week.

The number of people continuing to receive unemployment benefits increased to 6.78 million, the largest total on records dating back to 1967 and the 17th straight record week.

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2009-05-28 08:38:44