Initial jobless claims fell by 18,000 to 259,000 last week, according to the Department of Labor.
Economists had forecast that first-time filings for unemployment insurance totaled 270,000, according to Bloomberg.
The four-week moving average, which evens out some of the weekly volatility of the data, fell 2,250 to 267,000. There were no special factors that impacted the numbers.
“This looks great but the drop in claims was due largely to very friendly seasonals,” said Pantheon Macroeconomics’ Ian Shepherdson.
Renaissance Macro’s Neil Dutta pointed out a plunge by 13,176 in California, likely because of seasonal adjusted issues around the timing of the school year.
Shepherdson said the upcoming automakers’ shutdown that happens every year could see fewer workers laid off this time, possibly pushing claims to new lows before a rebound in July.
Claims have now come in under 300,000 for 68 straight weeks, the longest streak since 1973.
The last jobs report, which showed the weakest pace of hiring in six years, was more noise than signal and would be revised higher, Dutta said.