Small drop in initial jobless claims (AP) (18-03-2010)

WASHINGTON (AP) -- The number of newly laid-off workers applying for jobless benefits fell slightly last week for the third straight time, although their numbers are a long way from signaling net job gains.

New claims for unemployment insurance fell 5,000 to a seasonally adjusted 457,000, the Labor Department said Thursday. That nearly matched analysts' estimates of 455,000, according to Thomson Reuters.

The four-week average of jobless claims, which smooth out volatility, dropped to 471,250. Still, the average has risen by 30,000 since the start of this year. That's raised concerns among economists that persistent unemployment could weaken the recovery.

The average number of weekly jobless claims remains above the 400,000-to-425,000 level that many economists say it must fall below before widespread new hiring is likely.

Among states, North Carolina had the largest increase in claims, with 5,100. It attributed the increase to layoffs in the construction, apparel and industrial machinery industries.

Illinois, Oregon, Ohio and Alabama had the next-largest increases. The state data lags one week behind the initial claims figures.

New York had the largest drop in claims, with 10,929. It cited fewer layoffs in transportation and services. California, Connecticut, Kentucky and West Virginia also reported declines.

Source: AP