U.S. jobless claims fell sharply last week

Agencies, Washington

The number of U.S. workers applying for state unemployment benefits fell last week, the government said on Thursday in a report that still showed a soft labor market even amid the broader economic recovery.

First-time jobless claims fell by 55,000 to a seasonally adjusted 438,000 for the week ended April 6, Reuters quoted the U.S. Labor Department. But while claims decreased last week, the level remained well above Wall Street's expectations and reflected a pickup over the past few weeks in applications for extended unemployment benefits.

That extended benefits program is part of an economic stimulus package enacted by Congress earlier this year to help workers who lost their jobs amid last year's recession and in the aftermath of the Sept. 11 attacks.

The four-week moving average, a more reliable measure of employment conditions because it irons out weekly gyrations, rose to 433,750, the highest level since December of last year.

Adding to evidence of a still-weak labor market, the number of workers remaining on unemployment aid rose to a seasonally adjusted 3.78 million for the week ended March 30, the highest level recorded in 19 years.

Meanwhile, U.S. manufacturing is on the way back, an industry survey showed Thursday, with a key business outlook barometer leaping to an 18-month high in March.

The quarterly Manufacturers Alliance/MAPI index, compiled from a survey of 57 senior executives, rose to 52 points in March from 40 points in December, the highest since September 2000.

It was the first time the index had pierced the 50-point level since December 2000. A reading of more than 50 points indicates expansion in manufacturing output over the next three months.

"This quarter's survey provides solid evidence that the manufacturing sector is starting to rebound," AFP quoted Manufacturers Alliance/MAPI economist and survey coordinator Donald Norman.