Filings for jobless benefits fell last week to their lowest level since March, a sign layoffs eased somewhat as the labor market tries to recover from the coronavirus pandemic.

Initial unemployment claims fell by a seasonally adjusted 249,000 to 1.2 million for the week ended Aug. 1, the Labor Department said Thursday. The decline came as an extra $600 a week in pandemic-related unemployment benefits ended.

The number of applications last week was the lowest since the pandemic struck the U.S. Weekly claims figures, however, remain well above the pre-pandemic record of 695,000 in 1982.

Before last week, applications had plateaued in recent weeks, halting what had been a steady decline from a peak of 6.9 million in late March, when the pandemic and business closures shut down parts of the U.S. economy.

The number of people receiving benefits through regular state programs, which cover the majority of workers, decreased by 844,000 to 16.1 million for the week ended July 25. Those continuing claims, reported with a week’s lag, fell to lowest level since April.

A declining level of applications and benefit recipients is “a good sign,” said John Silvia, economist at Dynamic Economic Strategy. “But this trend is still impacted by the on again, off again shutdowns.”

Mr. Silvia said he wasn’t sure whether last week’s decline was connected with the expiring benefit, with Congress continuing to negotiate an extension in some form. “Many folks still want the federal benefit and will file hoping the benefit, at some level, will be renewed,” he said.

The Labor Department will release its broadest picture of July employment on Friday in the monthly jobs report. Economists surveyed by The Wall Street Journal forecast the report to show 1.5 million jobs were added last month and the unemployment rate fell to 10.6% from 11.1% in June.