The number of Americans filing new claims for jobless benefits fell to a 14-year low last week.
The fall marked a positive signal for the US labour market that could counter doubts over whether the economy is shifting into a higher gear.
Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 264,000, its lowest level since 2000, the Labor Department said today.
That suggests the labour market is gaining steam, and could bolster the view that the Federal Reserve will hike interest rates next year when the jobless rate is expected to continue to fall.
However, while the spike in layoffs during the 2007-2009 recession is decidedly in America's rear view mirror, the speed of hiring has only increased modestly over the last year, and Fed officials remain concerned about persistently low rates of inflation.
Claims for the prior week were unrevised.
Economists polled by Reuters had forecast claims rising to 290,000 for the week ended October 11.
The four-week moving average of claims, considered a better measure of labour market trends as it irons out week to week volatility, fell 4,250 to 283,500, also its lowest level since 2000.
