U.S. weekly jobless claims post
largest drop in almost two years
| WASHINGTON
New applications for U.S. unemployment benefits recorded their biggest drop in
nearly two years last week, pointing to a further tightening in the labor market.
nearly two years last week, pointing to a further tightening in the labor market.
Initial claims for state unemployment benefits declined 25,000 to a seasonally
adjusted 234,000 for the week ended April 1, the Labor Department said on
Thursday. The drop was the largest since the week ending April 25, 2015, and
unwound recent increases that had lifted claims to a three-month high.
adjusted 234,000 for the week ended April 1, the Labor Department said on
Thursday. The drop was the largest since the week ending April 25, 2015, and
unwound recent increases that had lifted claims to a three-month high.
"The lower jobless claims filings show the economy continues to show
improvement which is important news with the long expansion expected to
eventually tire somewhere down the line given its longevity," said Chris Rupkey,
chief economist at MUFG Union Bank in New York.
improvement which is important news with the long expansion expected to
eventually tire somewhere down the line given its longevity," said Chris Rupkey,
chief economist at MUFG Union Bank in New York.
Claims have now been below 300,000, a threshold associated with a healthy labor
market, for 109 straight weeks. That is the longest such stretch since 1970, when
the labor market was smaller. The labor market is currently near full employment.
market, for 109 straight weeks. That is the longest such stretch since 1970, when
the labor market was smaller. The labor market is currently near full employment.
Economists had forecast first-time applications for jobless benefits falling to
250,000 last week. The four-week moving average of claims, considered a
better measure of labor market trends as it irons out week-to-week volatility,
fell 4,500 to 250,000 last week.
250,000 last week. The four-week moving average of claims, considered a
better measure of labor market trends as it irons out week-to-week volatility,
fell 4,500 to 250,000 last week.
The dollar was little changed against a basket of currencies as were prices for
U.S. Treasuries. U.S. stocks were trading marginally higher.
U.S. Treasuries. U.S. stocks were trading marginally higher.
Last week's claims data has no bearing on March's employment report, which is
scheduled for release on Friday. Claims rose during the survey week for March
nonfarm payrolls, suggesting some moderation in the pace of job growth after
two straight months of gains in excess of 230,000.
scheduled for release on Friday. Claims rose during the survey week for March
nonfarm payrolls, suggesting some moderation in the pace of job growth after
two straight months of gains in excess of 230,000.
"The claims data suggest that the labor market remains in solid shape. But it
does look like things weakened around the reference week for the March
employment report," said Daniel Silver, economist at JPMorgan in New York.
does look like things weakened around the reference week for the March
employment report," said Daniel Silver, economist at JPMorgan in New York.
Also pointing to some pullback in job gains, global outplacement consultancy
Challenger, Gray & Christmas reported on Thursday that U.S.-based
employers announced 43,310 job cuts in March, up 17 percent from February.
Most of the layoffs were in the retail, telecommunications and education sectors.
Challenger, Gray & Christmas reported on Thursday that U.S.-based
employers announced 43,310 job cuts in March, up 17 percent from February.
Most of the layoffs were in the retail, telecommunications and education sectors.
A survey on Wednesday showed a measure of services
sector employment in March slipping, but remaining
at a level consistent with growing payrolls. Another report,
however, showed U.S. private payrolls surged by
263,000 jobs in March.
sector employment in March slipping, but remaining
at a level consistent with growing payrolls. Another report,
however, showed U.S. private payrolls surged by
263,000 jobs in March.
According to a Reuters survey of economists, nonfarm
payrolls likely increased by 180,000 jobs last month
after rising by 235,000 in February. The unemployment
rate is expected to hold steady at 4.7 percent.
payrolls likely increased by 180,000 jobs last month
after rising by 235,000 in February. The unemployment
rate is expected to hold steady at 4.7 percent.
Thursday's claims report also showed the number of people still receiving
benefits after an initial week of aid decreased 24,000 to 2.03 million in the
week ended March 25. The four-week moving average of the so-called
continuing claims fell 7,750 to 2.02 million, the lowest level since 2000.
benefits after an initial week of aid decreased 24,000 to 2.03 million in the
week ended March 25. The four-week moving average of the so-called
continuing claims fell 7,750 to 2.02 million, the lowest level since 2000.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci and Meredith Mazzilli)
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