Unemployment claims dropped to 787,000 for last week.
That's 55,000 less than the previous week.
Thursday's report from the Labor Department says 8.4 million people continue to receive unemployment benefits, down more than one million.
But the unemployment rate is still high at 7.9 percent, and many recipients are only getting state payments, since a federal supplement of $300 a week has ended in nearly all states.
