American unemployment rates dropped to 310,000 last week. This shift was indicated by on going strengthening of the US labour market, according to a government report published on Thursday.

First-time unemployment claims fell by 1,000 in the week ending February 26, the Labour Department said.  

The figures, which are thought to be a more reliable indicator of job market trends has shown a decline of 1500. Initial unemployment claims are at their lowest levels since October 2000.

Wall Street Economists predicted a slower pace of layoffs last week. The previous week's initial claims total was revised slightly lower from an originally reported 312,000.

The number of people who remained on the unemployment rolls after claiming an initial week of aid rose 12,000 to 2.67 million in the week ended Feb. 19, the latest period for which data are available.

A more comprehensive look at the U.S. job market will come on Friday, when the Labor Department releases its employment report for February. Economists expect that survey to show a gain of some 220,000 jobs last month, well above January's disappointing 146,000 increase.