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Jobless claims fall unexpectedly
The number of Americans seeking new claims for jobless benefits falls to the lowest level in months.
June 30, 2005: 8:40 AM EDT

NEW YORK (CNN/Money) - The number of Americans seeking new claims for jobless benefits fell by 6,000 last week to the lowest level in two months, the government said Thursday, in a surprise to economists expecting an increase.

First-time claims for state unemployment insurance aid fell to 310,000 in the week ended June 25 from a slightly revised 316,000 in the prior week, the Labor Department said.

The drop countered Wall Street's expectations for a rise to 325,000 from the original reading of 314,000 in the week ended June 18. The decline brought the claims to their lowest level since 299,000 in the week ended April 16.

A Labor Department analyst said there were no special factors behind the drop.

The closely watched four-week moving average, a better indicator of the labor market's health because it smoothes weekly volatility, also fell, dropping 10,250 last week to 323,500.

The number of people who remained on the benefit rolls after drawing an initial week of aid rose 4,000 to 2.6 million in the week ended June 18, the latest week for which information was available.

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