Associated Press Jobs brochures are seen on display at a state unemployment office in Sunnyvale, Calif. The government said Thursday, the number of newly laid-off workers seeking unemployment benefits fell more than expected last week, the second straight weekly drop fro a six-year high.

Applications for unemployment benefits dropped to a seasonally adjusted 425,000, down 10,000 from the previous week, the Labor Department reported. That was a slightly better figure than the 427,000 analysts expected.

The four-week moving average also improved to 440,250, down from 446,250 the previous week.

Meanwhile, the Commerce Department said Thursday that the economy grew at a 3.3 percent annual rate in the second quarter, faster than analysts expected.

Still, jobless claims remain at an elevated level. There were 332,000 initial claims for benefits in the year-ago period.

The number of people continuing to receive unemployment also rose to 3.4 million, up 64,000 from the previous week and the highest level in almost five years.

A Labor Department outreach program, coupled with businesses cutting jobs due to higher energy costs and tighter credit markets caused claims to spike to 457,000 for the week of Aug. 2. That was the largest total since claims surged to 479,000 in March 2002.

The department began an outreach effort in late July to notify people of a 13-week benefit extension approved by Congress in June. That effort turned up some people eligible to file new claims.

But a Labor Department analyst said Thursday the impact of the program has largely faded, playing only a small role in unemployment claims this week.

Several companies announced layoffs recently. Health care products maker Abbott Laboratories said it would cut 1,000 jobs, and telecommunications provider Embarq Corp. said it would eliminate up to 700 positions.

In addition, Alcoa Inc. said it would lay off 300 workers at a Texas smelting plant.