The number of Americans filing for first-time unemployment benefits fell to the lowest level in seven years last week, a strong sign that the labor market was strengthening, Reuters reported.

Initial claims for state unemployment benefits declined 24,000 to a seasonally adjusted 297,000 for the week ended May 10, the Labor Department said on Thursday.

"That was the lowest reading since May 2007 and brought claims back to their pre-recession level. Claims for the week ended May 3 were revised to show 2,000 more applications received than previously reported," Reuters reported.

Since application rates are a proxy to layoffs, the decline is evidence that employers ate cutting fewer jobs. During the Great Recession in March 2009, weekly applications topped 650,000, the Associated Press reported.

Economists polled by Reuters had forecast first-time applications for jobless aid ticking up to 320,000 last week.

During the Easter and Passover holidays, data had been difficult to adjust. School spring breaks, which fall on different calendar days every year, proved for claims to be volatile in recent weeks.

The state level data had not been influenced by any special factors, a Labor Department analyst said.

"The four-week moving average for new claims, considered a better measure of underlying labor market conditions as it irons out week-to-week volatility, fell 2,000 to 323,250," Reuters reported.

"The labor market is strengthening after wobbling in December and January because of an icy-cold winter. Nonfarm payrolls increased 288,000 in April and economists expect job gains to average 200,000 for the rest of the year."

The improved hiring may help boost economic growth for the rest of the year.

The number of people still receiving benefits after an initial week of fell 9,000 to 2.67 million in the week ended May 3, the lowest level since December 2007, the claims report showed.