WASHINGTON (Reuters) - The number of U.S. workers filing new claims for jobless benefits slumped 94,000 last week, government data on Wednesday showed, but seasonal factors were likely behind this unexpectedly large decline with the labor market remaining very soft.
Initial claims for state unemployment insurance benefits fell to a seasonally adjusted 492,000 in the week ended Dec 27 from an unrevised 586,000 the prior week, the Labor Department said. It was the lowest reading for initial claims since the week ended November 1, 2008 and the steepest decline since 1992.
Analysts polled by Reuters had forecast 565,000 new claims as the country's year-long recession continued to chill employment, and a separate reading on so-called continued claims hit a 26-year high.
A Labor Department official said the timing of the year-end holidays and volatility in seasonal factors was likely to blame for the large decline in initial weekly claims and warned this situation could persist for several more weeks.
(Reporting by Alister Bull, Editing by Chizu Nomiyama)