Labor Department Seal (Flickr/ DonkeyHotey)

According to the Labor Department, the four-week average of jobless claims also fell to 351,750.

While this could be a positive sign of economic recovery, over the years layoffs have spiked in the second week of January and subsequently plummeted.

"The [Labor] department seeks to adjust for these seasonal trends, but the figures can still be volatile. If the trend holds up, fewer applications would suggest that the job market is improving," the AP reported.

However, BEA reports have been showing a steady, upward trend through last year, closing with a 3.1 percent growth in the third quarter.

Read the full story at The New York Times.

Reach Executive Producer Francesca Martens here. Follow her here.