The number of people filing new claims for unemployment benefits fell more than expected last week to nearly the lowest level in seven years, the government said Thursday in a report that pointed to a strengthening labor market. The Labor Department reported that initial jobless claims fell 27,000 to 300,000 last week, just above a 7-year low reached three weeks ago. Economists had expected a smaller decline to 318,000. The four-week moving average of jobless claims—a better gauge of labor-market trends because it smoothes weekly volatility—fell 11,250 to 311,500 last week, the lowest level since August 2007. The number of people still receiving unemployment benefits fell 17,000 to 2.63 million last week, the lowest level since November 2007. Jobless claims are a measure of layoffs, so the decline last week suggests companies are cutting fewer jobs. When employers are confident enough to keep staff, they also may increase hiring. The downward trend in layoffs also suggests employers have ignored extremely weak economic performance in the first quarter, when the economy shrank at a 1 percent annual rate.
