The number of people applying for unemployment benefits fell last week to the lowest level since mid-July, according to the latest data from the Labor Department. 

For the week ending Sept. 26, the seasonally adjusted initial jobless claims fell to 197,000, a drop of 1,000 from the previous week. 

The four-week moving average was 200,000, which was a decrease of 2,500 from the previous week's revised average, the Labor Department said. 

Unemployment claims are a proxy indicator for layoffs, and they signal to economists where the job market is headed. So far this year, claims have remained below 220,000, which is a historic low.