The number of Americans claiming jobless benefits for the first time dropped less than expected last week, evidence that the labor market remains weak even as the economy is recovering, according to AP. The Labor Department said Thursday its tally of newly laid-off workers seeking unemployment insurance fell by 1,000 to a seasonally-adjusted 530,000. Analysts expected a steeper drop to 521,000, according to a survey by Thomson Reuters. The report came on the same day the Commerce Department said the economy grew at a 3.5 percent pace in the July-September quarter, snapping a record streak of four straight quarterly declines. But the economy isn"t growing quickly enough to spur much hiring. Initial claims need to fall below about 450,000 to signal that employers are actually adding jobs, several economists said. Still, many saw some positive signs in the report. The number of people continuing to claim unemployment insurance benefits dropped 148,000 to 5.8 million, a steeper fall than expected and the sixth straight decrease. Those figures lag initial claims by a week. That doesn"t include the nearly 4 million people receiving benefits from federal emergency programs during the week of Oct. 10, a decline of about 71,000 from the previous week. Many of those recipients likely are exhausting their benefits and falling off the rolls without finding jobs, some economists said. The National Employment Law Project, an advocacy group for the unemployed, has projected that 1.3 million people will use up their benefits by the end of the year. Congress has added up to 53 extra weeks of support on top of the 26 typically provided by the states. The Senate is considering whether to provide another 14 to 20 weeks of emergency support for those about to run out. About 52 percent of recipients in the past year have exhausted their regular state benefits, the highest proportion on records dating from 1972, according to Labor Department data. But the decline in the total benefit rolls could also mean at least some are finding jobs. The drop suggests «people are returning to work rather than shifting» from the regular program to emergency benefits, Zach Pandl, an economist at Nomura Securities, wrote in a note to clients. Meanwhile, the four-week average of claims, which smooths out volatility, fell for the eighth straight week to 526,250, its lowest level since early January. That indicates that companies are laying off fewer workers.