New data released Thursday detailing the number of Americans applying for unemployment benefits show only 340,000 claims were filed, according to the Labor Department. It's the lowest level for initial claims since March 14, 2020, when first-time claims totaled 256,000 before the COVID-19 pandemic.

The report beat initial expectations. According to CNBC, Dow Jones estimated the number at 345,000, 5,000 more than the final result. In another sign that the economic recovery is continuing at a steady pace, the number of continuing claims for unemployment benefits dropped by 160,000 to a total of 2.75 million Americans.

The data represents an improvement from last week’s jobs report setback, when initial claims inched slightly higher. Labor Department data from last week showed initial unemployment claims at 353,000 and the number of continuing claims hovering around 2,862,000.

The news comes just days before federal unemployment benefits are set to expire on Sept. 6.

Some states led by Republican governors acted sooner to end benefits, claiming that doing so would boost employment. However, job growth in states that did not cut benefits early were only marginally different. Economists interviewed by CNBC also suggest that this data can improve further as school begins, allowing more parents to return to the office.

Concern for the COVID-19’s Delta variant is still present, but parents were found to be warming up to the idea of getting themselves and their children vaccinated against it. A recently released Axios-Ipsos poll found that between concern for their children and employer vaccine mandates, the amount of hesitancy towards getting a vaccine has been trending downwards.

The economy is struggling to fill a labor shortage with employers complaining that they have jobs, but no applicants. A recent CNBC survey of U.S. chief financial officers found that 95% said that it was much harder to find workers than before in their experience.

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