US jobless claims plunge to lowest in 4 years

WASHINGTON (AP) — The number of people seeking unemployment benefits plunged last week to the lowest level in four years, a hopeful sign for the struggling job market. But the decline was partly due to temporary factors.

The Labor Department said today that weekly applications dropped by 26,000 to a seasonally adjusted 350,000. It was the third straight decline and the lowest level since March 2008.

The four-week average, a less volatile measure, fell to 376,500.

Applications measure the pace of layoffs. When applications consistently fall below 375,000, it generally suggests hiring is strong enough to reduce the unemployment rate.

Still, Labor officials cautioned that seasonal factors affected last week's figures.