The number of initial claims for unemployment benefits fell to 5,65,000 for the week ended July 4, reportedly the lowest since January.

"In the week ending July 4, the advance figure for seasonally adjusted initial claims was 5,65,000, a decrease of 52,000 from the previous week's revised figure of 6,17,000," the US Labor Department said in a statement on Thursday.

Reeling under recession, the unemployment rate in the US touched 9.5 per cent in June and is expected to rise in the coming months. To tackle the financial turmoil, many companies have resorted to massive layoffs as part of their efforts to cut down on costs.

The advance seasonally adjusted insured unemployment rate was 5.1 per cent for the week ending June 27, the statement said.

According to the Labor Department, the advance number for seasonally adjusted insured unemployment stood at 68,83,000 for the week ended June 27.

The figure is an "increase of 1,59,000 from the preceding week's revised level of 6,724,000," the statement noted.