WASHINGTON, Dec 4 (Reuters) - The number of Americans filing new applications for unemployment benefits dropped to the lowest level in more than three years last week, still showing no signs of a deterioration in labor market conditions.
Initial claims for state unemployment benefits fell 27,000 to a seasonally adjusted 191,000 for the week ended November 29, the lowest level since September 2022, the Labor Department said on Thursday. Economists polled by Reuters had forecast 220,000 claims for the latest week.
The data included last Thursday's Thanksgiving holiday. Claims tend to be volatile around holidays. They are at levels consistent with historically low layoffs, and could allay fears the labor market was weakening sharply after the ADP employment report on Wednesday showed private payrolls dropped by the most in more than 2-1/2 years in November.
The Bureau of Labor Statistics' closely watched employment report for November, originally due on Friday, has been delayed because of a record 43-day shutdown of the government and will now be published on December 16.
Economists view the labor market as remaining in a "no fire, no hire" state. Federal Reserve officials meet next week to decide on interest rates. As many as five of the 12 voting policymakers on the central bank's rate-setting Federal Open Market Committee have voiced opposition to or skepticism about cutting rates further, while a core of three members of the Washington-based Board of Governors wants rates to fall.
Labor market stagnation has been blamed on reduced labor supply amid a reduction in immigration that started during the final year of former President Joe Biden's term and accelerated under President Donald Trump's administration.
The integration of artificial intelligence into some job roles is also eroding demand for labor, with entry-level positions taking most of the hit.
Economists also say Trump's trade policy has created an uncertain economic environment that has hamstrung the ability of businesses, especially small enterprises, to hire.
The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, slipped 4,000 to a seasonally adjusted 1.939 million during the week ending November 22, the claims report showed.
The elevated so-called continuing claims suggest a steady rise in the unemployment rate. The unemployment rate increased to 4.4% in September from 4.3% in August.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama and Andrea Ricci)

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