March 20 (Bloomberg) — The number of Americans filing applications for unemployment benefits held last week near the lowest level in almost four months, a sign the labor market continues to strengthen.

Jobless claims increased by 5,000 to 320,000 in the week ended March 15, a Labor Department report showed today in Washington. The median forecast of 51 economists surveyed by Bloomberg called for an increase to 322,000. The four-week average, a less volatile measure, fell to the lowest level since late November.

A slowdown in dismissals may pave the way for employers to take on more workers once demand accelerates. Federal Reserve policymakers said yesterday in a statement there is "sufficient underlying strength in the broader economy to support ongoing improvement in labor-market conditions," even as economic activity slowed during the winter months.