The data from the Labor Department revealed the number of applications for unemployment benefits fell to a two-month low last week, pointing to still strong labor market conditions.

According to the report, the initial claims for unemployment benefits decreased 5,000 to 211,000 for the week ended March 23. 

Economists had expected 225,000 new claims last week. 

Claims for the prior week were revised downwardly to 216,000 from the initial estimate of 221,000.

Meanwhile, the four-week moving average of claims dropped 3,250 to 217,250 last week.