According to the latest figures released, the total number of claims for state unemployment benefits fell by 16,000 this week, indicating that the American job market is gradually recovering.

The latest data released by the Labor Department said on Thursday showed that the total jobless claims fell 16,000 to a seasonally adjusted 339,000 this week. The earlier data was revised earlier to include 3,000 more applications than previously estimated. Market analysts were expecting 351,000 new claims for the week.

Meanwhile, the four-week moving average for new state unemployment benefits, a better measure of the labour market, fell 4,500 to 357,500 during the week in the country, which normally indicates creation of around 150,000 jobs per month in the world's largest economy. The fall in the number of claims indicates that the jobs market might be recovering in the American economy after a slowdown in recent months.

It is believed that the government will announce next week that 145,000 people were hired during the month of April. Data showed that US firms added just 88,000 jobs during the month of March. Economists said that the slowdown in the jobs market in the month of the March may have been a seasonal characteristic.