New claims for US unemployment benefits dropped for the second consecutive week to new nine-month lows, the government said Thursday amid signs of economic recovery from recession.
The seasonally adjusted number of claims in the week to October 10 fell by 10,000 to 514,000 from the previous week's revised figure of 524,000, the Labor Department said.
It was lower than the 520,000 forecast by most economists and the lowest level since January 3, when the number of new claims was 488,000.
The four-week moving average, which smooths out week-to-week volatility, also fell, by 9,000 to 531,500 from the previous week's revised 540,500.
The total number of Americans receiving unemployment benefits also shrank.
According to the department's figures, the number for seasonally adjusted insured unemployment during the week ending October 3 was 5.992 million, a drop of 75,000 from the preceding week's revised level of 6.067 million.
The department's weekly report offers one of the most up-to-date snapshots of the job market, critical to economic momentum.
Analysts say although the level of new claims remains far too high, it is heading in the right direction as most government and private data point to a US recovery from one of the most brutal recessions since December 2007.
For the labor market to balance, some say claims should reach around 350,000.
The Labor Department also said that the country's insured unemployment rate was 4.5 percent for the week to October 3, a 0.1 percentage point drop from the prior week's unrevised rate of 4.6 percent.
In a blow to hopes of imminent recovery, Labor Department figures early this month showed job losses accelerated to 263,000 in September, pushing the unemployment rate to a new 26-year high of 9.8 percent.
Since the start of the recession nearly two years ago, the number of unemployed has increased by 7.6 million to 15.1 million.
The US economy contracted at a 0.7 percent pace in the second quarter, nearly emerging from the recession that slashed output by 6.4 percent in the first quarter, based on the most recent official data.
Most economists expect growth to return in the third quarter but say the recovery could fade without job growth.
