Jobless claims drop, productivity rises

WASHINGTON (AP) — New claims for jobless benefits fell last week in a sign that layoffs may be easing as the economy slowly recovers.

The Labor Department said today that initial claims for unemployment insurance fell by 29,000 to a seasonally adjusted 469,000. That nearly matches Wall Street analysts' estimates of 470,000.

Still, any improvement in the job market is likely to be slow, as companies are reluctant to add workers. Last week's drop only partly reverses a sharp rise in claims in the previous two weeks.

The four-week average of claims, which smooths out volatility, fell by 3,500 to 470,750. Despite the drop, the average has risen by about 20,000 since the beginning of the year.

Initial claims are considered a gauge of the pace of layoffs and an indication of companies' willingness to hire new workers. But they have been volatile in recent weeks as last month's severe snowstorms in the Northeast have distorted the data.