Lowest Unemployment Claims Over Two Years

New requirements for unemployment benefits fell more than expected last week, the lowest level for over two years, suggesting that the recovery of the labor market has increased.

Initial applications for state unemployment benefits fell by a seasonally adjusted 34,000 and 388,000, the lowest reading since the beginning of July 2008 the Ministry of Labor said Thursday. It was clearly the 415,000 expected by economists.

Weeks before the claims figure was revised slightly from the previously reported 422 000. Labor Department official said there was nothing unusual that the data at the state and described in the report clean.

"This adds to the idea that the employment situation is improving. This is another gem of the idea of recovery," said Adam Sarhan Sarhan CEO of Capital in New York.

U.S. prices of Treasury debt, already soft before the data, still lost ground, while the dollar's losses against the yen. S & P futures stock index trimmed losses.

Four-week average of new jobless claims, considered a better indicator of underlying trends in the labor market, and fell to 12,500,414,000, the lowest since the week ending July 26, 2008.

The constant decrease in claims in recent weeks probably indicates the pace of job creation has taken this month, after the Ministry of Labour of the nonfarm payrolls report showed employers added a meager 39,000 jobs November.

employment data for December is due January 7 and the preliminary Reuters survey of economists expect the Farm Payrolls grew by 126,000 this month, but still not enough to significantly reduce unemployment, which is expected to cut - 9.7% to 9.8% in November.

The claims data also showed the number of people continue to receive benefits under regular state programs after an initial week of aid rose 57,000 to 4,130,000 for the week ending 18th December over market expectations of 4.10 million. Week before the figure was revised upward slightly to 4.07 million.

The so-called continuous data requests were for the survey week in the December employment report survey of households, where unemployment is derived.

The unemployment rate should remain high in a labor market has improved and general economic conditions induce discouraged job seekers back into the workforce.

The number of people receiving unemployment benefits fell from 77 emergency 741-3710000 in the week ending December 11, last week for which data are available.

A total of 8.87 million people claiming unemployment benefits during that period under all programs.