Initial claims decreased to 454,000 for the week ending July 3, the lowest level in more than a month, as continuing claims fell to the lowest level in 20 months, the Labor Department reported today.
Continuing claims fell by 224,000 to 4.413 million, the lowest level since November 2008 and the largest weekly drop in a month.
Economists expected 465,000 initial claims and 4.6 million continuing claims, according to the median estimate from Thomson Reuters.
Initial claims for the week ending June 26 were revised higher to 475,000 from 472,000. Continuing claims were revised to 4.637 million from 4.616 million for the week ending June 19. Continuing claims have steadily fallen from about 4.8 million claims a week at the beginning of the year.
The four-week moving average for initial claims, a less volatile figure, fell to 466,000 from 467,250 the week before. The four-week average for continuing claims fell to 4.554 million from 4.573 million.
States had one less day to process claims because of the July 4th holiday observed on Monday. California and Virginia submitted estimated initial claims data. Hawaii, the Virgin Islands and the District of Columbia had their initial claims estimated by the Labor Department.
Ten states reported an increase of more than 1,000 initial claims for the week ending June 26 and four states reported a decrease of more than 1,000 initial claims. Layoffs in construction and an increase in school closings contributed to the increase in initial claims, states reported.
Workers filing for federal extension unemployment programs created amid the recession fell to 4.147 million for the week ending June 19.
