First-time claims for U.S. unemployment benefits unexpectedly decreased in the week ended September 7th, according to a report released by the Labor Department on Thursday, with claims falling to their lowest level in over seven years.

The Labor Department said initial jobless claims dropped to 292,000, a decrease of 31,000 from the previous week's unrevised figure of 323,000. The decrease came as a surprise to economists, who had expected jobless claims to climb to 330,000.

With the unexpected decrease, jobless claims fell to their lowest level since hitting 291,000 in the week ended April 1, 2006.

However, the Labor Department noted that the notable decrease in jobless claims came as two states failed to report all of their claims amid computer upgrades.