US unemployment claims fell last week, but a more accurate barometer of labour trends rose to its highest level in more than a year, the government reported today.
First-time claims for state jobless benefits fell 28,000 to 425,000 in the week ended May 3rd compared with an upwardly revised 453,000 in the prior week, the US Labor department said.
The four-week moving average, a more accurate indicator of the labour market's health because it smoothes out any volatility in the weekly data, rose 3,250 to 446,000 in the May 3rd week and to its highest since 449,000 in the April 20th, 2002 week. steady.
Jobless claims could worsen in weeks ahead as people, who lost jobs due to the devastation from the tornadoes that struck the Midwest this week, are counted and as layoffs at corporations continue to mount.
Nearly two million US jobs have vanished since President Bush, who faces a re-election campaign next year, took office.
The "continued claims" - those who continue to draw benefits - rose to 3.67 million in the April 26th week, the latest week for which data are available and to its highest since October 2002.