Initial jobless claims unexpectedly dropped to their lowest level since 1973.
Claims, which count people applying for unemployment insurance for the first time, fell to 235,000.
That is the lowest level for claims since November 24, 1973 when it was 233,000. Plus, claims have been below 300,000 for 89 consecutive weeks.
Economists had forecast claims ticked up slightly to 257,000 last week, according to the Bloomberg survey.
Initial jobless claims are used as a real-time proxy for the pace of layoffs and the overall health of the labor market, since people usually file for benefits soon after they lose their jobs.
The 4-week moving average came in at 253,500, a decrease of 6,500 from the previous week's revised average. The report noted that there were no special factors impacting this week's initial claims.