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New claims for unemployment benefits are at a five-year low. 

The Labor Department is reporting applications for jobless benefits fell by 37,000 to 335,000 last week. It's the lowest level since January 2008, and the drop surprised many economists.  

The news is not as positive for New York, though. The Empire State had the biggest increase in new claims with layoffs in transportation, construction and education. Michigan is reporting the largest decline due to fewer layoffs in the construction industry.

More than 3.2 million Americans remain on unemployment.

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