WASHINGTON — The number of new jobless claims and the total number of people receiving unemployment benefits dropped more than expected last week, though they remain at elevated levels and are unlikely to fall substantially in the coming months.
Few economists expect a turnaround in the battered labor market any time soon, with companies laying off thousands of workers weekly.
Still, the tally of initial requests for unemployment benefits fell to 639,000 from the previous week’s figure of 670,000, the Labor Department said Thursday. Analysts expected a smaller drop to 650,000.
In separate reports, factory orders fell for a record sixth consecutive month in January, the Commerce Department said, as demand fell across a wide cross-section of industries. And worker productivity fell more steeply than previously estimated in the fourth quarter, the Labor Department said.
Retailers, meanwhile, said sales dropped in February but at a slower pace than the previous month.
The 670,000 new-jobless- claims total reported a week ago was a high for the current recession and the most since October 1982, when the economy was emerging from a severe downturn, though the labor force has grown by half since then.
The number of people claiming benefits for more than a week fell slightly to 5.1 million in the latest report from 5.12 million, after rising to record highs for five straight weeks. Analysts expected 5.15 million continuing claims.
General Dynamics said Thursday it will lay off 1,200 workers.
