New applications for unemployment insurance benefits fell to 254,000 to begin July, the Department of Labor reported Thursday, down from 268,000 the week before and at the lowest level since April.
Economists had expected for jobless claims to just edge up to 269,000, adjusted for seasonal fluctuations.
Instead, they fell back to a historically low level. Throughout June and into July, jobless claims have signaled that the labor market recovery still has steam.
The low numbers of claims have provided a counterweight to the recent weak monthly jobs report numbers, which raised worries after they revealed that just 38,000 new jobs were created in May, further slowing growth.
The slowing job growth was enough to raise flags in the minds of officials at the Federal Reserve that the recovery may be losing momentum, minutes from their June meeting released Wednesday revealed.
Low jobless claims, however, suggest that layoffs are relatively rare and that, accordingly, net job growth is high.
Economists calculate that claims below 300,000 mean that unemployment will remain stable or trend down. It has now been 70 weeks since they eclipsed that mark, the longest such streak since 1973.
