The number of Americans filing new applications for jobless benefits fell more than expected to a near 42-year low last week, pointing to ongoing tightening in the labour market despite the recent slowdown in hiring.
The data released on Thursday provides a more upbeat check on the health of the labour market after last week's monthly employment report increased doubts the Federal Reserve would raise interest rates by the end of this year.
Initial claims for state unemployment benefits dropped 13,000 to a seasonally-adjusted 263,000 for the week ended Oct. 3, the U.S. Labor Department said.
That was the lowest since mid-July when the number of claims was at its lowest since 1973. Hitting such a historical low is remarkable considering the U.S. workforce has grown considerably since the 1970s.
It was also the 31st straight week that claims remained below the 300,000 threshold, which is usually associated with a strengthening labour market. The department said there were no special factors impacting last week's claims.
Claims for the prior week were revised lower by 1,000. Economists polled by Reuters had forecast a more modest decline in claims to 274,000 last week.
The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, dropped 3,000 to 267,500.
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