The Labor Department says the number of people seeking benefits fell by 37,000 to a seasonally adjusted 404,000 for the week ended Jan. 15.
The decline suggested that an unexpected rise in applications a week earlier was the result of seasonal factors. Applications often rise in early January after retailers lay off temporary holiday workers.
Applications remain near the two-year lows reached over the winter holidays. Fewer than 425,000 people applying for benefits is considered a signal of modest job growth. Economists say applications must fall consistently to 375,000 or fewer to substantially reduce the unemployment rate.
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