U.S. Weekly Initial Jobless Claims Drop By 9,000 to 366,000

Washington, D.C. (AHN) - The U.S. initial jobless claims for insurance benefits dropped unexpectedly by 9,000 to 366,000 after seasonal adjustments during the week that ended on March 22, according to the Labor Department's report released on Thursday.

The report released in Washington indicated that the four-week moving average for the index increased to its highest levels in two and a half years.

The four week moving average for initial claims, which is preferred by the market analysts as it reduces the weekly fluctuations, rose by 1,750 to 358,000, the highest figure registered since October 2005.

While, the four week moving average for continuing unemployment claims also rose by 25,250 to 2.824 millions, which was the highest figure registered since October 2005.

The market analysts surveyed by Bloomberg News estimated that the median initial jobless claims would drop to 370,000 from 378,000 for the prior week. Estimates ranged from 350,000 to 415,000.

"The underlying jobless claims numbers are climbing and that's a pretty good indication of the softness in the labor markets," Stephen Gallagher, chief U.S. economist at Societe Generale SA in New York, told Bloomberg news agency.

"Businesses are nervous and are cautious," Gallagher said.

The Labor Department's report also indicated that 41 states and territories reported a decline in the initial jobless claims, while 12 regions reported an increase.