The data from the Labor Department revealed on Thursday the number of applications for unemployment decreased more than forecast last week, hitting a fresh pandemic-era low.

According to the report, the initial claims for unemployment benefits dropped by 38,000 to 406,000 for the week ended May 22. This was the lowest reading since March 2020, when the COVID-19 pandemic struck.

Economists had expected 425,000 new claims last week.

Claims for the prior week were left unrevised at 444,000.

Meanwhile, the four-week moving average of jobless claims dropped to 458,750 from an unrevised 504,750 in the previous week.

Continuing claims fell to 3,642,000 from a downwardly revised 3,738,000 in the previous week.