The number of jobless claims dropped last week but the decline is predicted to only be temporary, according to the U.S. Department of Labor.
The department reported today that the number of newly laid off workers filing unemployment claims was down by 9,000 last week to a total of 349,000. The four-week average for claims rose to 360,500 and is the highest level for claims since the aftermath of Hurricane Katrina in Oct. 2005.
The decline last week was attributed in part to Monday being a state holiday as those in California, for example, had one less day to file unemployment claims. Analysts believe the four-week average reveals that the labor market is becoming increasingly strained because of a slowing economy.
