The number of new weekly jobless claims dropped by the most in more than a year in the latest week, according the US Labor Department.
The number of initial claims for unemployment benefits fell by 42,000 in the week that ended Dec. 21 to 338,000, below a consensus forecast of 345,000. This is the biggest drop since the week ended Nov. 17, 2012.
Stocks were little changed in premarket with Dow futures at +51 points and US 10-year Treasuries just below 3.0 percent yield.
The weekly number follows two weeks where claims unexpectedly jumped by 75,000, eventually reaching 380,000, the highest level since March.
The data can be especially volatile during the holiday season stretching from Thanksgiving to New Year’s Day. State unemployment offices are open fewer hours and there are often delays in processing claims.
A 4-week moving average is considered a more accurate barometer of employment trends because it smoothens out quirks in the weekly data.
This week, the four-week average rose 4,250 to 348,000. This is the highest level since early November.
This article originally appeared on Marketwatch.com.