The Associated Press

WASHINGTON - New claims for unemployment benefits plunged last week to their lowest level in 21 months, offering some cheer to workers as they head into the holiday shopping season.

The Labor Department reported Thursday that new applications for unemployment insurance fell by a seasonally adjusted 13,000, to 355,000, for the work week ending Nov. 30. The decline left claims at their lowest point since the week ending Feb. 17, 2001.

It was the third week in a row that new claims for jobless benefits went down, good news for workers who have been feeling the strain of the uneven economic recovery.

While the Thanksgiving Day holiday - in which unemployment offices were closed - might have played a role in the decline of new claims last week, economists have noted that claims recently have been drifting lower, a positive sign.

The more stable four-week moving average of new claims, which smoothes out week-to-week fluctuations, dropped to 376,500 last week, the lowest level since the week ending March 3, 2001.