Jobless claims drop slightly from elevated level

The Labor Department reported that initial claims for jobless benefits dropped 4,000 to a seasonally adjusted 481,000 for the week ending Nov. 1. That's just above analysts' estimates of 480,000, according to Thomson Reuters.

But the number of people continuing to receive unemployment insurance jumped by 122,000 to 3.84 million, the highest since 1983, when the nation was coming out of a deep recession. The figure for continuing claims lags the initial claims report and is for the week ending Oct. 25.

The work force was much smaller in February 1983, when the number of people continuing to claim benefits was 3.88 million.

At that time, about 87.2 million Americans were in the work force, compared to almost 134 million today. That's one reason the unemployment rate was 10.4 percent in February 1983, compared to 6.1 percent last month.

Still, the increase in people continuing to receive benefits is an indication that laid-off workers are having a harder time finding new jobs.

The number also may affect the political debate, as Democrats in Congress are pushing to include an extension of unemployment benefits in a new stimulus package, which could be taken up this month. Benefits typically last 26 weeks.

Congress approved a 13-week extension of benefits in June, and the department said about 773,000 additional people claimed benefits through that program for the week ending Oct. 18, the most recent data available. That extension is scheduled to end in June 2009.

Initial claims have been elevated in recent weeks due to the struggling economy, which has been hit by a global crisis in financial markets, and cutbacks in business and consumer spending.

Last month, new claims also were higher due to the impact of Hurricanes Ike and Gustav, but the department said that Thursday's figures don't include any hurricane impact.