The data from the Labor Department revealed on Thursday the number of applications for unemployment fell much more than expected last week, hitting its lowest level in more than a year.

According to the report, the initial claims for unemployment benefits decreased by 97,000 to 684,000 for the week ended March 20. This was the lowest reading since the pandemic hit the labor market in March 2020. 

Economists had expected 730,000 new claims last week.

Claims for the prior week were revised upwardly to 781,000 from the initial estimate of 770,000.

Meanwhile, the four-week moving average of jobless claims declined to 736,000 from an upwardly revised 749,000 in the previous week.

Continuing claims dropped to 3,870,000 from an upwardly revised 4,134,000 in the previous week.