US unemployment claims fall back to 42-year low | business | Hindustan Times
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US unemployment claims fall back to 42-year low

business Updated: Apr 15, 2016 13:48 IST
US level of unemployment

A'GACI clothing store hiring manager Marcie Lowe, right, gives her card to job applicant Xionara Garcia, left, of Miami, during a job fair at Dolphin Mall in Miami. Weekly applications for jobless benefits fell 13,000 to a seasonally adjusted 253,000, the Labor Department said (AP Photo)

New claims for US unemployment insurance benefits fell back to a 42-year low last week, suggesting further tightening of the jobs market, Labor Department data showed on Thursday.

Initial jobless claims, a sign of the pace of layoffs, dropped by 13,000 to 253,000 in the week ending April 9.

The decline took claims back to their lowest level in 42 years that was reached in early March. Claims have held below 300,000 for 58 straight weeks, the longest such streak since 1973.

The previous week’s level was revised down by 1,000 to 266,000.

“Claims have been choppy this year,” said Ryan Sweet of Moody’s Analytics. “The decline in initial claims over the past couple of weeks likely overstates the strength of the job market.”

The four-week moving average of claims, which helps to smooth week-over-week volatility, fell by 1,500 to 265,000. A year ago it was 280,500.

The US unemployment rate rose slightly in March to 5.0% on rising entrants into the labour market, while jobs growth remained solid.

The Federal Reserve projects the jobless rate will fall to 4.7% this year