The number of Americans filing jobless claims fell by 1,000 applications to 367,000 filings for the week ending May 5, the Labor Department said Thursday.
That is down from the previous week's revised figure of 368,000. Meanwhile, the four-week moving average hit 379,000 claims, a drop-off of 5,250 claims from the previous week.
A week prior, jobless claims fell by 27,000 claims for the week ending April 28, making the most recent drop look less substantial in comparison.
The subdued drop in claims allayed market fears that the American economy is quickly stalling out, sending more workers to the unemployment line. Last week, Capital Economics suggested a spike in claims during previous weeklong cycles was due to market disruptions from the early Easter holiday.