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Initial claims for state unemployment benefits dropped 19,000 to
a seasonally adjusted 235,000 for the week ended Nov. 12, the
lowest level since November 1973, the Labor Department said on
Thursday.
Claims for the prior week were unrevised.
Claims have now been below 300,000, a threshold associated with
a healthy labor market, for 89 straight weeks. That is the
longest run since 1970, when the labor market was much smaller.
Economists polled by Reuters had forecast first-time
applications for jobless benefits rising to 257,000 in the
latest week.
A Labor Department analyst said there were no special factors
influencing last week's data and that no states had been
estimated. Last week's data included the Veterans Day holiday
and claims tend to fall during weeks including a holiday.
As such, last week's drop likely exaggerates labor market
strength. The four-week moving average of claims, considered a
better measure of labor market trends as it irons out
week-to-week volatility, fell 6,500 to 253,500 last week.
The claims data covered the survey period for November nonfarm
payrolls. The four-week average of claims rose 1,500 between the
September and October survey periods, still pointing to solid
job gains this month. Employment increased by 161,000 jobs in
October.
The strong labor market, viewed as being at or near full
employment, and steadily rising inflation are expected to
encourage the Fed to hike interest rates at the Dec. 13-14
policy meeting. The U.S. central bank raised its benchmark
overnight interest rate last December for the first time in
nearly a decade.
Thursday's claims report also showed the number of people still
receiving benefits after an initial week of aid decreased 66,000
to 1.98 million in the week ended Nov. 5, the lowest reading
since April 2000.
The four-week average of the so-called continuing claims fell
19,250 to 2.02 million. That was the lowest level since June
2000.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)
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