Weekly jobless claims fell to 305,000 in the week ended September 20 from 309,000 the week before. Economists were expecting 325,000.
The number brought the four-week moving average down to 308,000, the lowest level since June 2007.
Continuing claims in the week ended September 13 grew to 2.823 million from 2.787 million in the week previous. Economists were expecting continuing claims to come in at 2.818 million.
An official at the Labor Department said that California has caught up with its backlog of applications that resulted from a computer system changeover, according to Bloomberg.
There were no "special factors" this time, meaning that the 305K figure is not artificially depressed like last week, according to the agency.
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