WASHINGTON -- The number of newly laid off workers filing applications for unemployment benefits dropped last week, but not enough to indicate that strains on the labor market are easing.
The Labor Department reported Thursday that 356,000 claims for jobless benefits were filed last week, a decline of 22,000 from the previous week. The decline erased only a part of the huge jump of 72,000 in claims of the previous week.
"We are in a recessionary band for jobless claims," said Lindsey Piegza, market analyst for FTN Financial.
The four-week average for jobless claims rose to 335,000, which was the highest level in a month.
The government reported last week that the economy shed 17,000 jobs in January, the first monthly job loss in more than four years.
Recession fears increased on Tuesday when the Institute for Supply Management reported a startling contraction in the service sector, triggering a 370-point drop that day in the Dow Jones industrial average.
On Wednesday, Macy's (M) reported disappointing sales results for January and announced that it was cutting 2,300 jobs, adding to worries that the current economic slowdown is spreading.
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Contributing: Reuters
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