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The number of Americans filing for unemployment benefits dropped less than expected last week as California continued to process a backlog of applications caused by computer malfunctions, Reuters news reported.
Initial claims for state unemployment benefits fell 12,000 to a seasonally adjusted 350,000, the Labor Department said on Thursday. Claims for the prior week were revised to show 4,000 more applications filed than previously reported.
A Labor Department analyst said claims from the backlog in California were still working their way through the system.
Technical problems as California converted to a new computer system have distorted the claims data since September, making it difficult to get a clear read of labor market conditions.
