By MARTIN CRUTSINGER
The Associated Press

The misleading fact about unemployment numbers from the government is that they don’t tell you that if people use up their unemployment benefits or give up looking for a job, they are no longer counted among the unemployed. - JS

WASHINGTON - The number of laid-off workers filing claims for unemployment benefits fell to the lowest level in seven weeks, an unexpected sign of improvement for the jobs market.

The Labor Department reported Thursday that new applications for unemployment benefits totaled 311,000 last week, a drop of 9,000 from the previous week. It marked the lowest level for jobless claims since July 28.

The decline came as a surprise for economists who had been forecasting a rise in claims of around 6,000.

The four-week average for claims, which smooths out some of the volatility, also showed an improvement, falling to 320,750 from 324,250 the previous week.

The labor market is being closely monitored for any signs that recent turmoil in financial markets and a deepening slump in housing are causing serious problems for the overall economy. Analysts believe the risks of a recession have risen significantly.

To ward off a possible downturn, the Federal Reserve on Tuesday cut a key interest rate by a half point. It was the first reduction in the federal funds rate in more than four years and was double the quarter-point change many analysts had expected.

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