To add details

July 23 (Reuters) - The number of Americans filing for unemployment benefits for the first time unexpectedly fell last week to its lowest level since the 1960s, suggesting the labor market remains stable and leaving room for Federal Reserve officials to focus on containing inflation.

The U.S. Labor Department said on Thursday that initial claims for unemployment benefits fell by 22,000, the largest drop in three months, to a seasonally adjusted 187,000 for the week ending July 18. This is the lowest level of new claims since September 1969 and defied economists' expectations, who polled by Reuters had forecast a slight increase to 212,000 for the week.

Thursday's report, which covers the survey week for the July national employment report due in about two weeks, is the latest indication of continued stability in the labor market.

The number of people registered on unemployment benefit lists for more than a week, an indicator of employment, fell to 1.796 million in the week ending July 11.

The unemployment rate unexpectedly fell in June to a one-year low of 4.2 percent, but this was more a result of a shrinking workforce than an increase in employment.

The US labor market was characterized by an unusual balance between a limited supply of available workers and a modest pace of job creation and limited layoffs, allowing the unemployment rate to remain low.

The Federal Reserve (the US central bank) is scheduled to meet next week.