Initial Jobless Claims in U.S. Fell to 404,000 Last Week

The number of Americans filing first-time claims for unemployment insurance payments fell more than forecast last week, adding to evidence the labor market is healing.

Applications for jobless benefits decreased 37,000 in the week ended Jan. 15, the biggest decline since February 2010, to 404,000, Labor Department figures showed today. Economists forecast 420,000 claims, according to the median estimate in a Bloomberg News survey. The number of people on unemployment benefit rolls fell, while those getting extended payments rose.

Employers may be retaining workers after the economy showed signs of strengthening at the end of last year. Economic growth may need to accelerate further and encourage companies to ramp up the hiring necessary to reduce an unemployment rate that’s hovering close to a 26-year high.