First-time applications for U.S. jobless benefits fell last week, signaling employers may be holding off on additional layoffs.

The U.S. Labor Department said Thursday first-time claims for unemployment benefits dropped by 9,000 to a seasonally adjusted 423,000.  But the Labor Department report said the four-week average – a less volatile figure – rose slightly.

Overall, the Department said a total of 3.73 million Americans are continuing to collect unemployment benefits.

Higher prices for food and fuel have caused consumers to cut back on spending, making many companies reluctant to hire and further hurting consumer confidence.

Earlier this month, the Labor Department said job growth stalled in August, leaving the unemployment rate at a relatively high 9.1 percent.

U.S. President Barack Obama is scheduled to talk about his plan to spark job growth at an event in ((the central U.S. state of)) Ohio later Thursday.

Mr. Obama has been urging lawmakers to pass a nearly $450 billion jobs bill, which would cut taxes for workers and businesses and fund projects that would employ construction workers and provide other jobs.

The president’s proposal has run into opposition from Republicans, who reject parts of the proposal that call for higher taxes and increased government spending.