The number of Americans lining up for first-time jobless benefits fell sharply in the latest week.
This suggested the job market might be improving as the US economy struggles to get out of recession.
Initial jobless claims fell by 86,000 to 394,000 for the week ended December 8th compared to a revised 480,000 in the previous week, the US Labor Department said today. This was the largest drop since August 1992.
However, the news was not all good. The report showed the number of workers remaining on jobless benefits for the week ending December 1st rose 36,000 to 3.7 million.
The four-week moving average, considered a more reliable barometer because it irons out weekly fluctuations common at this time of year, fell to 450,000 - from the previous week's revised average of 462,000.