A government report on Thursday revealed that last week saw fewer number of U. S. workers claiming for unemployment benefits, signifying labor market plus economy taking a U-turn.

The Labor Department stated that number of workers claiming for the unemployment benefits dropped to a seasonally-adjusted 550,000 in the week ended Aug. 1, down from 588,000 in the previous week.

Chief US economist at Deutsche Bank, Joseph LaVorgna said, "We believe the lower claims figures are an important economic development and confirmation that the economy is turning the corner."

Companies are resorting to fewer layoffs as they have started preparations to refill their exhausted stocks of goods. Though, most economists fear that the rate of joblessness would rise further to cross 10%.

The govt. will provide details of the July joblessness rate on Friday

Friday's report is expected to show 320,000 job-losses in July as compared with 467,000 in June.

However, chief economist at Barclays Capital, Dean Maki hopes that Friday's report will show a 275,000 fall in payrolls.

But, another data showed Thursday that jobs are still scant and the number unemployment-benefit claims soared by 69,000 to 6.3 million, after going down for three consecutive weeks.

The recession has eradicated around 6.5 million jobs since its beginning in Dec. 2007.