US jobless claims fall as firings decrease

The number of US workers seeking jobless benefits declined by the most in 14 months, evidence the pace of firings may be abating as the economy struggles to recover.

"Who's left to lay off?" said James F. Smith, director of the Kenan Institute's Center for Business Forecasting at the University of North Carolina, who is also the chief economist of the Society of Industrial and Office Realtors. "For most people, the jobs market isn't fabulous, but it's not getting any worse." Initial claims for state unemployment benefits fell by 60,000 to 378,000 in the week that ended Saturday, the Labor Department said.

The figures, which may be distorted by seasonal variations, have swung from a 21-month low the week ended Nov. 29 to an eight-month high the following week.

Companies may have pared payrolls enough after eliminating 1.6 million jobs since the economy entered a recession in March 2001, economists said. Computer Sciences Corp, the third-largest US computer-services company, is trying to cut costs by telling employees they must take vacation days in the next three months, instead of relying on more job reductions.

The economy is probably expanding at a 1.5 percent annual rate this quarter, down from a 4 percent pace from July through September, according to a Bloomberg News survey of economists.