First-time filings for US state unemployment benefits dropped by 34,000 to a seasonally adjusted 303,000 last week, the Labor Department said this afternoon.
It is the largest decline since December 2002 and the lowest level in three months.
The four-week average of new claims - which smooths out one-time events that can distort the weekly figures - dropped by 3,250 to a four-month low of 318,000 in the week ending July 16th. Economists say the four-week average provides a more accurate snapshot of the labour market.
In the latest week, there were no special factors that influenced the data, such as holidays, weather or seasonal plant closings, a Labor Department spokesman said.
In the previous week, auto plant closings had boosted initial claims by 16,000 to 337,000.
The number of people receiving unemployment checks fell by 41,000 to 2.577 million in the week ending July 9th. The four-week average of continuing claims dropped by 4,750 to 2.591 million, a six-week low.
The insured unemployment rate - the percentage of all covered workers who are receiving benefits - decreased by a tenth to 2 per cent.
Agencies