New jobless claims drop sharply

New unemployment claims dropped sharply last week, the latest sign that the jobs market may be slowly picking up.

Initial claims for jobless benefits fell to 415,000, according to Labor Department figures -- a drop of 42,000 from the previous week. Economists had expected a drop of 31,000.

Still, most analysts don't expect tomorrow's monthly jobs numbers to show a drop from the current 9.4 percent unemployment rate. Indeed, some say the figure may rise slightly.

(AP Photo/Steve Helber: Unemployed workers search for jobs at a Virginia jobs center)