Unemployment Claims Reached a Three-Month Low Last Week

The number of people that filed for unemployment benefits dropped for a second straight week and reached a three-month low for the week ending Oct. 23.

According to the Labor Department, 434,000 people filed for unemployment last week, which was a drop of 21,000 from the previous week. It is the second-lowest number of claims this year behind only the week of July 10, the Associated Press reports.

The AP added that economist John Ryding of RDQ Economics described the latest numbers as “encouraging” in a note to clients, though “we would need to see a couple more weeks of lower claims reading to be comfortable that employment growth is improving.

The four-week average, which helps smooth volatility, of 453,250 was a drop of 5,500 from the previous week and was the lowest level since the week of July 24. Additionally, the total number of people receiving unemployment insurance reached a two-year low and those that are receiving extended payments also fell.