New Unemployment Claims Decline

New unemployment filings decreased last week, but the total number of persons collecting unemployment benefits hit an all-time high, according to figures released today by the Commerce Department.

New jobless claims were a seasonally-adjusted 631,000 for the week ending April 25, down from a revised figure of 645,000 the week before. The four-week moving average of new claims also declined, falling to 637,250 from a revised figure of 648,000 the previous week.

The total number of persons collecting unemployment insurance reached an all-time high, hitting a reported 6,271,000 for the week ending April 18, according to the weekly unemployment report. Jobless claims have risen by more than 1.7 million since the beginning of the year.

13 straight weekly jobless records

It was the 13th consecutive week that the number of persons collecting unemployment compensation set a new record. The percentage of workers collecting unemployment in the week ending April 25 rose to 4.7 percent, the highest since December 1982.

The decline in new filings is a hopeful sign that the pace off layoffs may finally be slowing. It follows an unexpected drop to 613,000 for the week ending April 11, two reporting cycles ago. Otherwise, new jobless claims have generally ranged around 650,000 a week since mid-February. By comparison, new jobless claims from October through January tended to fluctuate around 500,000 a week.

Consumer spending dips

The Commerce Department also reported today that consumer spending fell slightly in March, following modest increases in January and February. The Department's Bureau of Economic analysis reported that consumer spending declined at an annual rate of 0.2 percent in March, following increases of 0.4 percent in February and 1.1 percent in January. Personal spending is generally believed to account for two-thirds of the activity in the economy.

Personal income fell 0.3 percent, or $34 billion, in March, following a 0.2 percent decline in February. Personal savings, on the other hand, increased from 4.0 to 4.2 percent of disposable income, rising to $455.3 billion in March from $432.6 billion the month before.