US unemployment claims at three-and-half-year low
The number of people filing initial applications for unemployment benefits dropped by 19,000 last week to 366,000, the fewest since May 2008, the US Labour Department said Thursday.
Analysts had expected a smaller decline, forecasting 390,000 claims. The rolling four-week average of new claims, viewed as a better gauge of underlying trends, fell 6,500 to 387,750, the lowest level since July 2008.
Economists regard a jobless claims figure of less than 400,000 as indicative of signs of life in the labour market.
The weekly total has declined gradually since peaking at 478,800 in late April and has come in below 400,000 in five of the last six weeks.
Around 6.7 million people are currently receiving state or federal unemployment benefits, according to the Labor Department report.
State benefits generally run out after 26 weeks, but the worst economic slump since the Great Depression prompted lawmakers to approve federal emergency programmes that provide jobless benefits for up to 99 weeks.
The Labor Department's November jobs report, released last Friday, showed the unemployment rate dropping from 9 per cent to 8.6 per cent as the economy added 120,000 net new jobs.
The jobless rate now stands at its lowest level in 2 1/2 years, dipping below 9 per cent for the first time since March.
Post new comment