First-time filings for state unemployment benefits dropped by 34,000 to a seasonally adjusted 303,000 last week, marking the lowest level in three months, the Labor Department said Thursday It's the largest decline seen in jobless claims since December 2002 Wall Street economists had been expecting claims to fall to about 325,000, according to a MarketWatch survey. The four-week average of new claims dropped by 3,250 to a four-month low of 318,000 in the week ended July 16. Economists say the four-week average provides a more accurate snapshot of the labor market since it smoothes out one-time events that can distort the weekly figures. In the latest week, there were no special factors that influenced the claims data, such as holidays, weather or seasonal plant closings, a Labor Department spokesman said In the previous week, auto plant closings had boosted initial claims by 16,000 to 337,000 Meanwhile, the number of people receiving unemployment checks fell by 41,000 to 2.577 million in the week ended July 9. The four-week average of continuing claims dropped by 4,750 to 2.591 million, a six-week low The insured unemployment rate, making up the proportion of all covered workers who are receiving benefits, decreased by a tenth to 2%