Unemployment applications dip in holiday week

The Labor Department says filings for unemployment benefits declined last week but results could be skewed by the Christmas holiday.

WASHINGTON (AP) -- The number of newly laid off workers filing for unemployment benefits fell sharply last week although much of the improvement reflected unusual factors related to the Christmas holiday.

The Labor Department said the number of persons applying for jobless benefits totaled 336,000 last week, down by 21,000 from the previous week when jobless claims had hit the highest level in more than two years.

Last week's decline in benefit applications was more than double what had been expected, but analysts cautioned that it is difficult to gauge the strength of the labor market from the claims figures during holiday-shortened work weeks.