The number of Americans filing for unemployment benefits fell 28,000 for the week ended 12/31/16, pointing to further tightening in the labor market. The seasonally adjusted 235,000 initial claims for state unemployment benefits was close to the 233,000 touched in mid-November, which was the lowest level since November 1973.

Initial jobless claims have now been below 300,000 - a threshold associated with a healthy labor market - for 96 consecutive weeks. That is the longest stretch since 1970, when the labor market was much smaller.

The labor market is considered to be at or near full employment, with the jobless rate at a nine-year low of 4.6%. Tightening labor market conditions and gradually firming inflation allowed the Federal Reserve to raise its benchmark overnight interest rate last month by 25 basis points to a range of 0.50% to 0.75%.

Layoffs last month were led by the defense, automotive, energy, transportation and government sectors. Employers announced 526,915 layoffs last year, down 12% from 2015.