First-time jobless claims fall by 8,000

First-time jobless claims fell by 8,000 last week as the job market continues showing signs of gradual improvement. 

The total dropped to 355,000, though Hurricane Sandy, which pounded New Jersey and New York last week, probably skewed the data and could do so for upward of a month, the Labor Department reported Thursday.  

The four-week moving average, a less volatile figure that better reflects the job market's trajectory, increased by 3,250, to 370,500.

Economists argue that the labor market is healthier when applications fall below 375,000, with a hiring pace that is fast enough to bring down the unemployment rate, which now sits at 7.9 percent as more workers began the job search and not all of them found work. 

Employers added 171,000 jobs in October and hiring in August and September was faster than initially estimated, adding a total of 82,000. 

After a slowdown in the economy and hiring from April through June, the economy has shown consistent signs of improvement, especially in the housing market, which has finally started making gains around the country. 

With President Obama set up for a second term, the pressure is on for the White House and Congress to forge an agreement, even a temporary one, on spending and tax issues that will hit in January. 

Lawmakers return to Washington next week to start the process. Obama spoke with congressional leaders on Wednesday, and Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.) both signaled a willingness to work together toward an agreement despite obvious policy differences.