WASHINGTON — The number of laid off workers filing claims for unemployment benefits fell last week by the largest amount in three months.
The Labor Department said applications for jobless benefits dipped by 15,000 last week to 338,000. The decline was the largest since the level of claims dipped by 22,000 in the first week of September.
Analysts cautioned against reading too much into the improvement given the volatility in the numbers around holidays. The previous week, claims surged to the highest level since February.
The four-week average for claims continued rising to 340,250, highest level in two years.
Economists are looking for the labor market to weaken under the impact of the serious downturn in housing, the credit crunch and rising energy prices.
The government will release its November employment report Friday. It is expected to show that the unemployment rate edged up to 4.8%, from 4.7% in October.
Overall economic growth is expected to slow to a tiny 1.5% annual rate in the current October-December period and weaken even further in the first quarter 2008.
Analysts said growth rates this low raise the threat of a recession. Federal Reserve officials have noted the slowdown in recent comments and Wall Street is hoping the central bank will ride to the rescue with another rate cut when Fed officials meet next Tuesday.
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