The number of newly laid off workers filing for US unemployment benefits unexpectedly fell last week to the lowest level in a month. The Labor Department reported Thursday that applications for jobless benefits totaled 365,000, down by 9,000 from last week. Economists had expected claims to rise slightly. Even with the unexpected decline, claims remain at a level that indicates the labor market is under stress from the sluggish economy. The four-week average for claims rose slightly to 372,250, up significantly from a year ago when the four-week average was around the 300,000 mark. The level of jobless claims has been difficult to read over the past several weeks because of troubles adjusting the claims figures to take into account this year's early Easter and the impact of a strike at an auto parts supplier for General Motors. However, economists note that the trend for claims has been rising since last fall. The number of people receiving unemployment benefits was above the 3 million mark for the week ending May 10, the fourth straight week that has occurred. That is a level of continuing claims that has not been seen since 2004. The Federal Reserve released a new economic forecast on Wednesday which demonstrated the fears of Fed officials. Fears of slow to sluggish that showed Fed officials now expect economic activity to be much more sluggish this year, with the unemployment rate expected to rise more than the Fed had been forecasting.
