While the number of people filing jobless claims for the first time remains very high, last week saw that number fall by about 94,000 claims. The week prior was met with the largest number of first-time filings since 1982.

“The underlying picture is terrible for the labor market,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. The initial claims figures were “distorted by some sort of breakdown in the seasonal adjustment process, with the holidays.”

Jobless claims were projected to decline to 575,000 from the prior week’s unrevised 586,000, according to the median projection of 17 economists in a Bloomberg News survey. Estimates ranged from 540,000 to 585,000.

The magnitude of the drop in claims last week indicates the figures will remain volatile, likely jumping to make up for last week’s decline, the Labor spokesman said.

Certainly not good news going into a new year.