Weekly jobless claims drop to lowest level since 2008

Economists say that jobless claims need to run between 300,000 and 400,000 to reflect job growth. Companies have said they plan to hire in the first six months of the year, especially as consumer demand picks up. 

Recent unemployment reports have been skewed so far this year because of widespread wintry weather, especially across the South. This week’s figures reflect the continuation of those effects, according to the Labor Department. 

Still, despite an improvement in jobless claims, most job market analysts expect the unemployment rate to hover around 9 percent through 2011 before dropping to 8 percent in 2012. 

Federal Reserve Chairman Ben Bernanke told lawmakers on Capitol Hill on Wednesday that the economy will need about four years to bring the jobless rate down to pre-recessionary numbers, between 5 percent and 6 percent from the 9 percent in January. 

Unemployment dropped to 9 percent from 9.4 percent in January, the lowest level since April 2009, but the job market saw gains of only 36,000, which was blamed on the snowy weather that hit the South and New England especially hard. 

The number of people continuing to collect jobless benefits fell by 47,000, to 3.89 million, in the week ended Jan. 29. Figures for continuing claims do not include the number of workers receiving extended benefits under federal programs.

Those who’ve used up their 26 weeks of state benefits and are collecting federal emergency and extended benefits increased by 84,000, to 4.64 million, in the week ended Jan. 22.

Eighteen states and territories reported an increase in claims, while 35 had a decrease, led by North Carolina with the largest decline in claims. The largest increase came in California, which was up by 12,274.