Jobles Claims Fall to 386,000

Weekly initial jobless claims are on a roller coaster once again.

About 386,000 people filed for their first week of jobless claims last week, according to the Labor Department. While that marked a decrease of 2,000 claims from the week before, it was only because the previous week's number was revised higher than originally reported.

It was also much higher than the 375,000 claims economists had expected.

Initial claims are considered a key measure of the strength of the job market. When they fell to four-year lows a couple months ago, it was seen as an encouraging sign that layoffs were waning and companies were hiring more workers.

But now initial claims are back at higher levels, adding to fears that the job market's recent gains may be fizzling. Indeed, the Labor Department's monthly jobs report showed employers added only 120,000 jobs in March, a significant slowdown from the 240,000 jobs added just a month earlier.

Could that sluggish momentum continue?

Economists surveyed by CNNMoney expect the economy to add an average of 162,000 jobs per month from now until the end of the year -- barely enough to keep up with population growth. They predict the unemployment rate will fall to 8%, not much of an improvement from the current 8.2% rate.