Job Market Shows Signs of Healing

WASHINGTON (Reuters) - The number of U.S. workers filing new jobless claims edged up by a slim 1,000 last week and a gauge of underlying labor market trends hit a nearly 16-month low, evidence the job market continues to heal.

The Labor Department said on Thursday initial claims for state unemployment benefits rose to 434,000 after declining for two consecutive weeks. Wall Street analysts had expected claims to hit 447,000.

However the four-week moving average, considered a better measure of underlying labor market trends, dropped to the lowest level since mid-September 2008. The average fell for the 18th straight week to 450,250 -- around the level economists associate with labor market stability.

"The persistent downtrend evident in these data is encouraging and corroborates our view that the employment situation is turning," said Michelle Girard, a senior economist at RBS in Greenwich, Connecticut...Keep Reading.