The number of newly laid-off workers filing applications for unemployment benefits dropped slightly last week but remained at a level showing the strains of a weak economy.
The Labor Department reported Thursday that jobless claims fell by 5,000 last week to 381,000 after having surged by 27,000 the previous week.
The small improvement was not enough to keep the four-week average from rising to 375,250, pushing it close to the level reached in early April, when the average had jumped to highs not seen since the wave of layoffs following the 2005 Gulf Coast hurricanes.
The nation's unemployment rate soared to 5.5 percent in May, up from 5 percent it April. That represented the biggest one-month jump in 22 years and served as a stark reminder of the pressures the labor market is facing from the weak economy.
Economic growth slowed dramatically late last year, reflecting a prolonged housing slump and a severe credit crisis which hit the financial system last August.
While there had been concerns that the country could slip into a recession, analysts now believe a full-blown downturn can be avoided with the help of 130 million economic stimulus payments which are being mailed out currently.
The drop of 5,000 claims for last week was slightly smaller than had been expected. For the previous week ending June 7, a total of 44 states and territories reported an increase in claims and nine states reported declines.
The states with the biggest increases were California, up by 10,778, a rise attributed to higher layoffs in service industries, and Florida, up 6,164, an increase that reflected more layoffs in construction, trade, services, manufacturing and agriculture.
The state with the biggest drop in layoffs was Wisconsin, which experienced a decline of 1,382, reflecting fewer layoffs in construction, trade, services and manufacturing.
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