New claims for unemployment insurance dipped last week, suggesting that companies are layi
In the jobless-claims report, even with the decline, a government analyst said, the level was inflated as a result of a technical fluke. The distortion is coming from a requirement that laid-off workers seeking to take advantage of a federal extension for benefits must summit new claims. Congress recently passed legislation signed into law by President Bush that provided a 13-week extension of jobless benefits.
The fluck has clouded the layoffs picture for several weeks. But the government analyst said the refilling requirement is having much less of an effect on the claims numbers than in previous weeks. The more stable four-week moving average of new claims, which smoothes out weekly fluctuation, also fell last week to 435750, the lowest level since the beginning of April. But the number of workers continuing to receive unemployment benefits rose to 3.8 million for the work week ending April 20, evidence that people who are out of work are having trouble finding new jobs.
Economists predict that job growth won't be strong enough in the coming months to prevent the nation's unemployment rate-now at 5.7 percent-from rising. Many economists are forecasting a rise in April's jobless rate to 5.8 percent and estimating that businesses added around 55,000 jobs during the month. The government will release the April employment report on Friday. Even as the economy bounces back from recession, some economists expect the jobless rate will peak to just over 6 percent by June. That is because companies will be reluctant to quickly hire back laid-off workers until they are assured the recovery is here to stay. Given the fledging rebound, many economists expect the Federal Reserve to leave short-term interest rates-now at 40-year lows-unchanged when it meets on May 7.The Fed adjusted interest rates 11 times in a row last year to rescue the economy from recession, which began in May 2001.
The fact that new claims for jobless benefits decreased shows that______.
A.the economy is well on its way to recovery
B.more jobless workers have found new jobs
C.companies have slowed down firing workers
D.unemployment rates fluctuate on a seasonal basis