Initial jobless claims drop to 457,000

WASHINGTON (AP) — New jobless claims fell last week for the third time in four weeks but remain elevated.

The Labor Department said Thursday that first-time claims for unemployment insurance dropped by 11,000 to a seasonally adjusted 457,000.

Claims have fluctuated this month because of temporary seasonal factors. General Motors and other manufacturers skipped their traditional summer shutdowns, which led to fewer layoffs and unemployment claims. But the impact of that distortion has largely faded from the data, a Labor Department analyst said.

The four-week average of claims, which smooths fluctuations, dropped to 452,500, the lowest level since May.