Initial jobless claims fall

The Labor Department estimated Thursday that for the week ending July 27, there had been 326,000 claims for benefits, a decline of 19,000 from the previous week’s 345,000.

This compares favorably to 366,000 claims at this time last year. 

{mosads}As of July 20, there were 2,951,000 people receiving unemployment insurance, down from 3,003,000 the week before.

The overall unemployment rate was 7.6 percent in June and economists predict a slight decline to be reported on Friday. 

The economic recovery from the Great Recession remains slow in part due to a large sudden decrease in government spending and an increase in taxes that went into effect Jan. 1. 

The Commerce Department reported 1.7 percent growth in the second quarter. Growth of 2 percent or higher is generally considered necessary to reduce unemployment as the population expands.