U.S. Department of Labor officials said there were fewer workers who filed for unemployment benefits last week, but analysts believe the decline is only temporary.

Federal officials reported that the number of jobless claims fell by 9,000 last week, bringing the total to 349,000. Last week's drop was more than anticipated, but based on labor market trends, claims rose to 360,500 during the last four weeks—the highest level since October 2005 in the weeks following Hurricane Katrina.

The Federal Reserve released a forecast last week, saying the country still could avoid a recession. Nevertheless, some economists believe the country already is in a downturn and that growth will be negative in the first and second quarters. Recession is typically defined as two consecutive quarters of negative economic growth.

Source: Associated Press

Written by Jenny Cromie, certified human resources specialist (CHRS)