Claims for unemployment benefits drop last week

New claims for unemployment benefits fell last week, signaling an easing of layoffs but still reflecting a weak job market. 

First-time claims dropped by 11,000 to a seasonally adjusted 457,000, as the economy continues its slow recovery, the Labor Department said Thursday.

During the past few weeks, claims hit their lowest level since September 2008 as factories remained open during the summer months. 

General Motors and other manufacturers had reported fewer temporary layoffs but those changes have evaporated from the data, according to a Labor Department analyst.

The four-week moving average, which provides a better gauge of the employment situation, was 452,500, the lowest level since May. 

Unemployment numbers have hovered around 450,000 for the past several months, showing no real downward movement, which is needed to push along the recovery. 

Economists argue jobless claims need to drop into the low 400,000s or high 300,000s to reflect stronger job growth in the private sector.

The number of Americans continuing to claim benefits increased by 81,000 to 4.57 million. That doesn’t include an additional 3.67 million who are receiving federal extended benefits. 

Requests for unemployment benefits have fallen steadily from a peak of 651,000 in March 2009.