Hurricane Katrina
Last week's drop was the biggest since September 2005, when claims first surged then plunged in the aftermath of Hurricane Katrina.
"Volatility at this time of year is fairly common," the Labor Department spokesman said as the data was released. Claims tend to jump around during holidays as the government has difficulties adjusting the data for seasonal swings in employment. It's more important to track the moving average in such times, the spokesman said.
The number of people continuing to receive jobless benefits dropped by 215,000 in the week ended Jan. 7 to 3.43 million.
The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs.
Those who've used up their traditional benefits and are now collecting emergency and extended payments increased by about 105,200 to 3.56 million in the week ended Dec. 31.
Eligible For Benefits
The unemployment rate among people eligible for benefits, which tends to track the jobless rate, fell to 2.7 percent, the lowest since September 2008, today's report showed.
Thirty-seven states and territories reported an increase in claims, while 16 reported a decrease. These data are reported with a one-week lag.
Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates.
Payrolls climbed by 200,000 workers in December after rising by 100,000 the prior month, and the jobless rate fell to 8.5 percent, the lowest level in almost three years, Labor Department figures showed on Jan. 6.