By Ruth Mantell, MarketWatch
WASHINGTON (MarketWatch) -- First-time claims for state unemployment benefits fell a seasonally adjusted 28,000 to 452,000 in the week ended Dec. 19, hitting the lowest level since September 2008, the Labor Department reported Thursday.
Economists polled by MarketWatch were looking for an initial claims level of 470,000. The four-week average of new claims fell 2,750 to 465,250, which also the lowest level since September 2008. The four-week average smoothes out distortions in the week-to-week data.
The drop among initial claims reverses recent gains.
"In hindsight, it appears that at least some of the surprising elevation seen in the Dec. 12 week reflected the arrival of much colder than usual temperatures across much of the nation," according to a Morgan Stanley research note written prior to Thursday's data release.
Seasonal adjustments can be tricky this time of year, analysts said.
In the week ended Dec. 12, the number of people who continued to collect benefits fell 127,000 to 5.08 million, the lowest level since February. The four-week average of continuing claims fell 90,000 to 5.23 million, the lowest level since March.
Initial claims represent job destruction, while continuing claims represent job creation. Benefits are generally available for those who lose their full-time job through no fault of their own. Those who exhaust their unemployment benefits are still counted as unemployed if they are actively looking for work. See why the jobs picture isn't likely to improve much in 2010.
The insured unemployment rate, which represents the portion of all workers covered by unemployment insurance who are collecting benefits, remained at 3.9%.
