Jobless Claims Declined More Than Forecast Last Week
Filings for U.S. unemployment benefits dropped more than forecast last week, consistent with a robust labor market, a Labor Department report showed May 4.
Key Points
• Jobless claims decreased by 19,000 to a three-week low of 238,000 (forecast was 248,000) in the week ended April 29.
• Decline included a 13,890 unadjusted drop in New York’s claims, partly reversing the 16,315 jump in the previous week.
• The number of people continuing to receive jobless benefits fell by 23,000 to 1.96 million in the week ended April 22 (data reported with one-week lag), the lowest since April 2000.
Big Picture
The trend of subdued jobless claims indicates employers are placing a premium on workers with experience and skills. Together with steady hiring, that underscores a tighter job market. The monthly payrolls report, due from the Labor Department on May 5, is projected to show the economy added 190,000 workers in April after a 98,000 advance in March, and the unemployment rate hovered near the lowest in almost a decade.
Other Details
• Four-week average of initial claims, a less-volatile measure than the weekly figure, edged up to 243,000 from 242,250 in the prior week.
• The four-week average of continuing claims declined to 1.99 million, the lowest since November 1988.
• The unemployment rate among people eligible for benefits held at 1.4%.
• Louisiana was the only state to estimate initial claims last week.
• There was nothing unusual in the broader data, according to the Labor Department.
