WASHINGTON: Fewer people sought US unemployment benefits last week, evidence that employers remain confident in the economy and are laying off few workers.

The Labour Department said on Thursday that weekly applications for unemployment aid dropped 6,000 to a seasonally adjusted 271,000.

The four-week average, a less volatile measure, ticked up 1,000 to 272,500. Applications are a proxy for layoffs and are at historically low levels, suggesting businesses are holding onto their staff. Earlier this month, the four-week average stood at 266,000, the lowest since April 15, 2000.