New claims for US jobless benefits fell by 25,000 in last week's holiday-shortened workweek, the government said today.
The level of initial claims for state benefits, which is a rough guide on the health of the US labour market, slipped to 376,000 in the November 16th week from a revised 401,000 in the prior week. Last week's level was the lowest since July.
"The drop is kind of suspicious especially given the Veterans' Day Holiday," said Mr Drew Matus, senior economist at Lehman Brothers.
Wall Street economists' had forecast new jobless claims to be reported at a much higher level of 392,000. "But the four-week average is moving lower, it has been moving lower, and it does suggest to us the labour market may have improved slightly," said Mr Matus.
This week's drop in new claims pulled the closely watched four-week moving average for jobless claims to 395,750 from 400,250 recorded for the previous week.
The moving average, considered a more reliable barometer of job market trends because it irons out weekly fluctuations, is at its lowest since August.