US initial jobless claims last week fell by 19,000 to a total of 204,000, the US Department of Labor reported today. The previous week’s level was revised downward by 2,000.

Economists polled by Reuters had forecast 225,000 claims for the latest week. The low number of claims was due to severance packages and still-strong demand for labor, which made it easier for laid-off workers to get another job, according to economists polled by Reuters. They also said companies are likely to slow hiring before embarking on layoffs after struggling to find labor during the pandemic, Reuters reported.

Meanwhile, the four-week moving average of claims fell by 6,750 in the week ended Dec. 31 to a level of 213,750.