New Jobless Claims Drop Unexpectedly

WASHINGTON -- New claims for unemployment benefits dropped unexpectedly last week, but the number of people continuing to seek aid rose sharply.

The Labor Department says initial applications for unemployment insurance dropped by 24,000 to a seasonally adjusted 467,000 for the week ending Jan. 3. Wall Street economists expected initial claims to increase to 540,000. The figure partly reflects seasonal volatility that occurs around the New Year's holiday.

Still, the number of people continuing to claim jobless benefits jumped unexpectedly by 101,000 to 4.61 million. That was above analysts' expectations of 4.5 million and the highest level since November 1982.