Jobless claims hovered above pre-pandemic levels last week as employers avoid layoffs and many workers quit or remain sidelined in a tight labor market.

Initial claims for jobless benefits edged down to seasonally adjusted 268,000 last week from a revised 269,000 a week earlier, the Labor Department said Thursday. Claims are at the lowest level since the pandemic hit the U.S. economy last spring and are gradually drifting down toward pre-pandemic levels.