Jobless claims fall 21,000 to 323,000

The number of Americans applying for unemployment benefits slipped 21,000 last week to a seasonally adjusted 323,000, in a sign the labor market continues to improve as businesses see little need to cut jobs.

That's the lowest level of weekly unemployment benefit applications since late September. Analysts were expecting jobless claims to fall to 335,000.

The Labor Department said Thursday that the less volatile four-week average fell 6,750 to 338,500. The four-week average has dropped for the third straight week. Both figures are near pre-recession levels.

Applications had spiked in early October because of the partial government shutdown and processing backlogs in California. But jobless claims have now fallen in five of the past six weeks.

The steady declines are the latest sign that companies are firing fewer workers and suggest hiring will continue to pick up.

Employers added 204,000 jobs in October, many more than expected and a sign that companies shrugged off the 16-day government shutdown. Private businesses added 212,000 positions, the most since February.

The Federal Reserve is watching the labor market as it debates whether to cut back its bond-buying program. Policymakers last month said they still expected to dial down their easy-money policy within a few months, according to meeting minutes released Wednesday.

Contributing: Associated Press