Jobless claims fall to 340,000

Applications for unemployment benefits fell last week as the labor market got some wind at its back amid continued uncertainty around budget issues in Washington. 

First-time jobless claims dropped by 7,000 to a seasonally adjusted rate of 340,000 for the week that ended March 2, close to the five-year low hit in January,  the Labor Department reported on Thursday. 

The four-week moving average, which better reflects the direction of the labor market, ticked down by 7,000 to 348,750, the best showing since March 2008.

The figure is a reflection of layoffs, which usually drop as overall job growth picks up. 

The government's February jobs report is due out Friday and could show that the economy added more than 150,000 jobs.

A separate report released on Wednesday showed that the private sector hired 192,000 workers last month. The unemployment rate is expected to remain steady, although it probably dropped to 7.8 percent. 

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