Welcome drop in jobless claims ends year

The number of Americans filing for first-time unemployment benefits fell sharply last week. First time jobless claims fell by 94,000 for the week ended Dec. 27, the Department of Labor reported today. Initial filings for first-time unemployment benefits dipped to 492,000 last week from the 26-year high of 586,000 for the week ended Dec. 20. The Labor department cited seasonal volatility in explaining the drop. Economists surveyed by Chicago-based Briefing.com Inc. were expecting jobless claims to slip to 575,000. The four-week moving average for unemployment insurance claims was 552,250, a decrease of 5,750 from the previous week.