The latest report shows 381,000 claims were filed last week, a drop of 23,000 from the week before.
In the week ending November 26th, more than 3.5 million people filed claims for unemployment benefits, including continuing claims.
California reported a drop of more than 27,000 initial claims for jobless benefits.
It credited a drop in layoffs in the service industry.
Texas and Florida also reported significant drops in claims.
Wisconsin reported an increase of more than 8,000 claims.