New applications for unemployment benefits fell dramatically last week, according to a Thursday report by the US Labor Department. The Labor Department said that new claims dropped by 29,000 to 429,000-the lowest level since August 2008. Thursday's numbers were the second straight week that initial claims dropped sharply and the third drop in the last four weeks. Claims fell by 17,000 in the previous week. Claims have remained above 450,000 all year, after dropping steadily last year from a high of 651,000 in March 2009. Meanwhile, many of the long-term unemployed are continuing to lose benefits as a result of a congressional impasse over extending emergency jobless aid. The number of people receiving extended benefits fell by about 250,000 to 4.3 million in the week ending June 26, the most recent data available. During the recession, lawmakers added up to 73 weeks of extra benefits, paid for by the federal government, on top of the 26 weeks typically provided by states. But those extensions expired in late May, leaving about 2 million people without unemployment aid, according to the Labor Department. That figure could grow to 3.3 million by the end of this month if Congress does not take action. The administration of US President Barack Obama and Senate Democrats are pushing legislation that would renew the extended benefits through November. The Senate is expected to have the votes next week to pass the measure. Those emergency figures do not include the people continuing to receive benefits from state programs. That figure jumped by 247,000 to 4.68 million, the department said.
