WASHINGTON (Reuters) - The number of Americans standing in line to file first-time claims for unemployment benefits fell unexpectedly last week to its lowest level in 17 months, the government said on Thursday in a report signaling an improving jobs market.

New claims for state unemployment insurance -- a rough guide to the pace of U.S. layoffs -- dropped by 21,000 in the week ending July 20 to 362,000 from a revised 383,000 in the prior week, the Labor Department said. Economists polled by Reuters had expected claims would rise slightly to 382,000 from the 379,000 previously reported for the July 13 week.

The last time initial claims were lower was the week ending Feb. 17, 2001, when they stood at 355,000.

Economists greeted the data as an indication of strengthening in the labor market, which could encourage consumers to be bolder with their spending -- a key engine of the U.S. economy.

"This is an encouraging sign that the labor market conditions are improving slowly but surely, and confidence and spending may get a boost with this good news. Labor market growth is critical to economic recovery," said Richard Yamarone, senior economist at Argus Research Corp in New York.

The closely watched four-week moving average of claims, which smoothes weekly fluctuations, fell by 7,500 to 384,500 last week from a revised 392,000 a week earlier. The last time the average was lower was March of last year -- the month the United States tumbled into recession.

Another barometer of labor-market conditions, the number of workers already on the unemployment benefit rolls, also suggested conditions were improving. These so-called continued claims decreased 51,000 to 3,518,000 in the July 13 week -- the latest week for which figures are available -- from a revised 3,569,000 a week earlier. It was the fifth straight week continued claims had fallen.

Claims for jobless benefits had spiked higher early this month, a move analysts attributed to temporary seasonal shutdowns of automobile plants for retooling. But now both the initial claims figure and four-week average are below where they stood before that spike, suggesting some fundamental improvement in the jobs market.

Also, while volatility in the claims figures at this time of year is not uncommon as plants retool, the department said July figures that are not adjusted for seasonal fluctuations have followed a pattern very similar to that seen last year.

That means much of the volatility was likely tempered by the department's process of adjusting the figures for seasonal patterns, meaning the figures should be giving a reasonable read on the labor market.

While economists widely believe the United States has clambered out of recession, hiring has remained stubbornly weak, leading some to proclaim a jobless recovery. The economy had generated only 60,000 new jobs through June, according to a Labor Department report released earlier this month.


Alles ist gut. Alles wird besser.

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