US Unemployment claims at 400,000 level (ext)

By Hibah Yousuf @CNNMoney August 4, 2011: 11:06 AM ET

NEW YORK (CNNMoney) -- The number of first-time filers for unemployment benefits fell last week, but remained at a key level signaling that the job market remain sluggish.

There were 400,000 initial unemployment claims filed in the week ended July 30, the Labor Department said Thursday, down 1,000 from an upwardly revised 401,000 the prior week. Economists surveyed by Briefing.com were expecting jobless claims to rise to 405,000.

Initial claims have sat above 400,000 for 17 consecutive weeks, since the start of April, when high oil prices, bad weather and Japan's tsunami were weighing on businesses.

Economists say claims need to consinstenly hold below that level to achieve sustainable job growth and lower the unemployment rate.

"The job market and the broader economy are firmly in agonizingly slow growth mode for foreseeable future," said Tim Quinlan, economic analyst at Wells Fargo. "While we don't think there will be another recession, the probability of that has never been higher than it is now."