New applications for unemployment benefits plunged 12,000 to 232,000 in the second week of August, the Department of Labor reported Thursday, reaching the lowest level since February.

The drop exceed economists' expectations for a slight dip in jobless claims to 240,000.

Low jobless claims are a good sign for the economy, and the recent paucity of people showing up to collect benefits at state agencies suggests that the jobs recovery still has momentum.

In fact, Thursday's report marks the 17th straight week that the total number of people claiming benefits, which are available for up to 26 weeks in most states, was below 2 million. The country hasn't seen a streak like that since the winter of 1973-1974, when Nixon was president and the total workforce was much smaller.

Economists calculate that new jobless claims under 300,000 indicate tha unemployment will remain steady or fall.

At 4.3 percent in July, the unemployment rate was already the lowest it had been since 2001 and below where Federal Reserve officials think it can go without eventually driving up inflation.