Initial Jobless Claims Lowest Since July 2008

Washington, DC, Dec. 30, 2010 -- Initial jobless claims fell last week to the lowest level in nearly two and a half years, the Labor Department said.

Initial claims declined by 34,000 to 388,000 in the week ended Dec. 25, the first time the figure has dropped below 400,000 since July 2008.

The previous week's figures were revised up slightly to 422,000 from 420,000.

Economists had expected claims would fall by just 2,000.

The four-week average of new claims, which aims to smooth volatility in the data, also fell to its lowest point since July 2008.