Fewer Americans sign up for jobless benefits, good sign labor market remains strong

Fewer Americans signed up for jobless benefits last week, an encouraging sign that most companies are not resorting to large-scale layoffs as the U.S. copes with continuing problems in the housing and credit markets.

The Labor Department reported Wednesday that new applications filed for unemployment insurance dropped by a seasonally adjusted 11,000 to 330,000 for the week ending Nov. 17. It was the lowest level since the beginning of November. The 330,000 level of claims was in line with economists' forecasts.

A year ago, new claims for unemployment insurance stood at 322,000.

The four-week moving average of claims, which smooths out …