Jobless claims drop

Analysts warn of a possible recession despite the largest dip in new claims filed in three months.

WASHINGTON (AP) -- The number of laid off workers filing claims for unemployment benefits fell last week by the largest amount in three months.

The Labor Department reported that applications for jobless benefits dipped by 15,000 last week to a total of 338,000. The decline was the largest since the level of claims had dipped by 22,000 in the first week of September.

Analysts cautioned against reading too much into the improvement given the volatility in the numbers around holiday periods. Claims had surged the previous week to the highest level since February.