The number of Americans initially applying for unemployment aid fell sharply to a five-year low last week, the Labor Department reported Thursday.

The advance figure for seasonally adjusted initial claims for jobless benefits was 324,000 in the week ending April 27, down 18,000 from the revised figure of 342,000 in the previous week. It was also the lowest since January 2008.

Meanwhile, the four-week moving average, which helps smooth out week-to-week volatility, edged down to 342,250 from 358,250 in the previous week. A reading below 375,000 generally indicates a sustained drop in the unemployment rate.

The advance figure for seasonally adjusted insured unemployment during the week ending April 20 stood at 3.02 million, up 12,000 from the previous week.

The decreasing jobless claims point to fewer layoffs, but companies also need to add more jobs to significantly cut unemployment. The Labor Department will release the April jobs report on Friday.

Source: Xinhuanet