Slight decrease seen in number on unemployment

WASHINGTON (AP) — The number of people on the unemployment insurance rolls fell slightly for the first time in 20 weeks, while the tally of new jobless claims also dipped, the government said Thursday.

The Labor Department report provides a glimmer of good news for job seekers, though both drops were small and the figures remain significantly above the levels associated with a healthy economy. The job market likely will remain weak well into next year, according to estimates from government and private economists.

The department also said U.S. workers were more productive in the first quarter than previously estimated, as rapid layoffs forced companies to make do with fewer employees.

The tally of first-time claims for jobless benefits declined to a seasonally adjusted 621,000 from the previous week’s revised figure of 625,000, nearly matching analysts’ expectations.

The total jobless benefit rolls fell by 15,000 to 6.7 million, the first drop since early January. Continuing claims had set record highs every week since the week ending Jan. 24. The continuing claims data lag initial claims by one week.

Separately, sales fell in May at many retail stores as shoppers spent cautiously, focusing on bargains and food.

Discounter Target Corp., warehouse club operator Costco Wholesale Corp. and Macy’s Inc. department store reported drops in sales. TJX Cos., which owns the TJ Maxx and Marshalls chains, said sales rose a greater-than-expected 5 percent.

Wal-Mart Stores Inc., the world’s largest retailer, did not report monthly sales but did say it expects to hire about 22,000 people for new positions this year.

The number of initial jobless claims remains stubbornly high, above the 605,000 level reached five weeks ago. That was the lowest level in 14 weeks.

The four-week average of claims, which smooths out fluctuations, rose by 4,000 to 631,250.

And the number of people claiming jobless benefits through an emergency program rose by about 160,000 to 2.35 million. That figure, which lags initial claims by two weeks, brings the number of people claiming benefits to more than 9 million.

Congress approved the emergency extension last June. It adds up to 33 extra weeks of benefits on top of the regular 26 weeks provided by most states.

Productivity, the amount of output per hour worked, rose at a seasonally adjusted annual rate of 1.6 percent in the January-March period, the department said, double the government’s estimate last month.

The increase came despite a steep drop in output, because companies laid off employees and cut hours worked at an even faster pace.

Higher productivity can raise living standards because workers that produce more can earn higher wages without forcing companies to raise prices.