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AP fileAmy Gress, top, hands a resume to high school principal Scott Roberts during an education job fair at the University of Kansas in Lawrence, Kan., in November. The number of newly laid-off workers filing claims for unemployment benefits unexpectedly rose last week as the recovery of the nation's battered labor market proceeds in fits and starts.
Updated at 9:59 a.m.
WASHINGTON -- A fitful economic recovery is drawing strength from a stabilizing U.S. job market and signs that manufacturing will contribute to the rebound.
The latest sign was a government report today that the number of newly laid-off workers filing claims for unemployment benefits fell more than expected last week. And the four-week average for claims, which smooths out fluctuations, fell for the 16th straight week, to its lowest point since September 2008, when the financial crisis hit with full force.
Further evidence of a gradually healing economy was a report that orders to U.S. factories for big-ticket durable goods rose in November. The overall increase was less than expected. But excluding the volatile transportation category, the gains were twice what economists had forecast.
The Labor Department said the number of new jobless claims fell to a 452,000 last week, down 28,000 from the previous week, on a seasonally adjusted basis. That's a better performance than the decline to 470,000 that economists had expected.
And the four-week average for claims, which smooths out fluctuations, fell to 465,250 -- the 16th straight weekly decline.
Unemployment claims have been falling unevenly since summer. That improvement is seen as a sign that jobs cuts are slowing and hiring could pick up early next year. The fall in weekly claims of 28,000 last week, which followed two smaller weekly increases, shows that the halting improvement continues.
But the Labor Department warned that seasonal employment from holidays and other variables in the calendar made last week a difficult one to seasonally adjust. The actual number of new claims was higher than the previous week, but fewer than expected. The process of adjusting for seasonal variation reduced the number.
Economists monitor jobless claims as a gauge of the pace of layoffs. Analysts say initial claims need to fall to about 425,000 for several weeks to signal the economy is actually beginning to add jobs.
The government sa