US jobless claims at 42 year low

Date

12/26/2015 11:51:16 PM

(MENAFN- Khaleej Times)

The number of Americans filing for unemployment benefits fell more than expected last week nearing a 42-year low as labour market conditions continued to tighten.

Initial claims for state unemployment benefits dropped 5000 to a seasonally adjusted 267000 for the week ended on December 19 not far from levels last seen in late 1973 the Labour Department said on Thursday.

The prior week's claims were revised to show 1000 more applications received than previously reported. Economists polled by Reuters had forecast claims dipping to 270000 in the latest week.

Claims have been below 300000 a threshold associated with a buoyant labour market for 42 consecutive weeks the longest stretch since the early 1970s.

However some of the decline last week could be attributed to difficulties adjusting the figures during the holidays.

The four-week moving average of claims considered a better measure of labour market trends as it strips out week-to-week volatility rose 1750 to 272500 last week.

A Labour Department analyst said there were no special factors influencing the data and that no states had been estimated.

The claims report showed the number of people still receiving benefits after an initial week of aid declined 47000 to 2.20 million in the week ended on December 12. The four-week moving average of the so-called continuing claims rose 10000 to 2.21 million.

The continuing claims data covered the period during which the government surveyed households for December's unemployment rate. Continuing claims rose 42250 between the November and December survey periods suggesting little change in the jobless rate which was at a 7-1/2-year low of five per cent last month.

The unemployment rate is in a range many Federal Reserve officials see as consistent with full employment. It has dropped seven-tenths of a percentage point this year.

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