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US jobless claims fall for third week in a row

New claims for US unemployment benefits fell for a third consecutive week, to their lowest level since March 2008.

This is according to official data which comes as the US economy struggles with feeble job growth.

The Labor Department reported 350,000 initial jobless claims were filed in the holiday-shortened week ending July 7.

That was a decrease of 26,000 from the prior week's upwardly revised number of 376,000.

The improvement was much better than the 375,000 claims expected, but analysts cautioned that the weekly figures can be volatile. Government offices were shut July 4 for a public holiday.

Some noted the seasonally adjusted claims numbers were affected by car makers' regular summer plant shutdowns, which this year have been curtailed in an effort to meet demand. The overall trend in claims, which signal the pace of layoffs, has been downward in recent months.

Last week's four-week moving average fell by 9,750 to 376,500 claims.

The US added a paltry 80,000 jobs in June, the third month of weak jobs growth amid a sluggish economy that has kept hiring on hold. The unemployment rate was unchanged at 8.2% from May.