The number of Americans filing initial claims for unemployment benefits last week fell 10,000 from the week prior, its second straight week of decline, as the economy continues its flirtation with expansion.  Initial jobless claims for Illinois increased, however, as the state’s employment picture remained dreary.

The advanced seasonally adjusted amount of initial jobless claims was 453,000 for the week ended May 29, the U.S. Department of Labor said Thursday, down 10,000 from the previous week’s revised figure. That was slightly lower than economists surveyed by Bloomberg LP were expecting.

“This is going to be a long-term trend,” stressed Scott Testa, professor of business administration at Cabrini College in Philadelphia.  Testa was hesitant to draw positive conclusions from this week’s report, suggesting employers are unlikely to boost their hiring until 2011.  “Very little hiring gets done during the summer,” he said, though he expects a hiring “uptick” in January and February.

The residential real estate market is still hurting, Testa said, and housing “touches a lot of points in the economy,” since it is indicative of consumer confidence and spending.

Yet, the retail industry is showing some positive signs, Testa said.  “The real litmus test is going to be the holiday season shopping,” he said.

Quarterly data on jobless claims is a stronger indication of the employment outlook, Testa asserted, because weekly numbers are constantly being revised.

http://news.medill.northwestern.edu/chicago/news.aspx?id=166271

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