New applications for unemployment benefits dropped to a near four-year low last week, signaling continued improvement in the labor market, a U.S. government report said Thursday. The Labor Department said initial claims for state unemployment benefits decreased 50,000 to 352,000, the lowest level since April 2008. Last week's claims data covered the survey period for January nonfarm payrolls and claims dropped by 14,000 between the December and January survey periods. The four-week moving average of claims, considered a better measure of trends, dropped 3,500 to 379,000 last week. The number of unemployed workers still collecting benefits after an initial week fell 215,000 to 3.43 million, which is the lowest since September 2008. The unemployment rate is currently 8.5 percent. In order for the unemployment rate to fall, weekly applications should be consistently below 375,000, economists say.
