Jobless claims fall slightly

Labor Department says unemployment claims fell 5,000 last week, but levels remain high.

WASHINGTON (AP) -- The number of newly laid-off workers filing applications for unemployment benefits dropped slightly last week but remained at a level showing the strains of a weak economy.

The Labor Department reported Thursday that jobless claims fell by 5,000 last week to 381,000 after having surged by 27,000 the previous week.

The small improvement was not enough to keep the four-week average from rising to 375,250, pushing it close to the level reached in early April, when the average hit highs not seen since the wave of layoffs following the 2005 Gulf Coast hurricanes.

The nation's unemployment rate soared to 5.5% in May, up from 5% in April. That represented the biggest one-month jump in 22 years and served as a stark reminder of the pressures the labor market is facing from the weak economy.

Economic growth slowed dramatically late last year, reflecting a prolonged housing slump and a severe credit crisis which hit the financial system last August.