Initial unemployment claims fall by 42,000

Initial unemployment claims shrank by 42,000 in the week ending Jan. 29, the Labor Department reported Thursday.

The decrease brings the total number of claims to 415,000. It also serves as another data point indicating the economy is recovering and gaining strength.

The four-week moving average, which is supposed to paint a more accurate picture after smoothing out week-to-week volatility, was up by 1,000 to 430,500.

For the week ending Jan. 22. initial claims grew more than expected, driven in part because of snow in the South that created a backlog of people waiting to file their claims. That week saw claims rise by 51,000, to 454,000.

Before adjourning 111th Congress last year, lawmakers passed legislation that extended 2001 and 2003 tax breaks for two years and provided for extended federal unemployment benefits through the end of the year for those out of work for longer than six months.