First-time claims for state unemployment benefits dipped down in the latest weekly data, while continuing claims reached a record high, the Labor Department reported Thursday. The number of initial claims in the week ending Feb. 7 fell 8,000 to 623,000, a level that is 84% higher than the same period in the prior year. The four-week average of initial claims rose 24,000 to 607,500 -- the highest level since November 1982 and up 76% from the prior year. The four-week average for claims draws the attention of economists and investors because it smoothes out distortions caused by bad weather, strikes or the timing of holidays. For the week ending Jan. 31, the number of Americans receiving state jobless benefits rose 11,000 to a record 4.81 million. The four-week moving average of continuing claims also reached a record, rising 73,750 to 4.75 million. The data go back to 1967. The data show that businesses are laying off workers at a rapid pace, and that it's hard to find a new job. Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new employment. The jobless claims report comes on the heels of Congress reaching agreement on a $789 billion economic stimulus plan, which leaders hope will create 3.5 million jobs over the next two years. Economists say that stimulus is needed given the ongoing job losses, with another 598,000 gone in January. Job losses have been large and widespread, according to government data. The insured unemployment rate, representing the proportion of covered workers who are receiving benefits, remained steady at 3.6%.

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