Initial jobless claims fell to 348,000 to for the week ended February 9 -- above the 343,000 consensus estimate, the U.S. Labor Department announced Thursday. Claims for the previous week were revised up 1,000 to 357,000.

Also, the four-week moving average jumped 12,000 to 347,2500 -- the highest four-week average since September 2005. Economists view the four-week average as a better indicator of unemployment conditions as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.

The largest increases in initial claims for the week ending Jan. 26 were in Washington, +2,710; Pennsylvania, +2,387; Oregon, +2.373; and Florida, +2,041. The largest decreases were in California, -2,849; Michigan, -1,723; Maryland, -1,050; Iowa, -870; and Massachusetts, -690.

The number of continuing claims decreased by 9,000 to 2.761 million from a revised 2.770 million for the week ended February 2, the latest period for which figures were available.

Economic Analysis: Once again, a poor weekly statistic, one that continues to show a tepid employment conditions. Further the 4four-week moving average continues to rise and is now just 3,000 claims shy of the U.S. Federal Reserve's danger zone of 350,000. The U.S. Federal Reserve considers a four-week average above 350,000 a signal of soft labor market conditions. In addition, the high continuing claims, which measures the seasonally adjusted uninsured, of 2.761 million, also indicates a tepid job market. If jobless conditions continue to worsen, additional monetary and fiscal measures may be needed to stimulate the U.S. economy.