Unemployment numbers fall for the first time in 20 weeks

WASHINGTON -- The number of people on unemployment insurance rolls fell slightly last week for the first time in 20 weeks, and the number of new jobless claims also fell, the government said Thursday.

In a second report Thursday, the Labor Department said productivity, the amount of output per hour worked, rose at a seasonally adjusted annual rate of 1.6% in the January-March period, double the government's estimate last month and above analysts' expectations of 1.2% growth.

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

But the increase resulted from a sharp cut in hours worked, which fell faster than output.

The jobs report provides a glimmer of good news for job seekers, though both drops were small and the figures remain significantly above levels associated with a healthy economy.

The Labor Department said first-time claims for jobless benefits fell to a seasonally adjusted 621,000 from the previous week's revised figure of 625,000, nearly matching analysts' expectations.

The number of people continuing to collect jobless benefits fell 15,000 to 6.7 million, first drop since early January. Continuing claims had set record highs every week since the week ended Jan. 24. Continuing claims data lag initial claims by one week.

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

Initial claims are still below the peak for the current recession of 674,000 in late March. Many economists see the decline as a sign that layoffs outside the auto sector have peaked. But the unemployment insurance data remain significantly higher than a year ago, when initial claims were 370,000 and total benefit rolls stood at 3 million.

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

The report comes a day before the department is scheduled to release its unemployment report for May. Economists expect that report will show employers cut 520,000 jobs last month.