U.S. jobless claims drop to more than 45-year low

APD NEWS

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The number of Americans filing for unemployment benefits fell to more than a 45-year low last week, suggesting the economy remains strong despite signs of a slowdown in the first quarter.

Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 215,000 for the week ending March 24, the lowest level since January 1973, the Labor Department said on Thursday.

Economists polled had forecast claims falling to 230,000 in the latest week.

The revisions did not change the theme of tightening labor market conditions. Claims have now been below the 300,000 threshold, which is associated with a strong labor market, for 158 straight weeks. That is the longest such stretch since 1970, when the labor market was much smaller.

Economists are optimistic that tightening labor market conditions will start boosting wage growth in the second half of this year. That should help to support consumer spending, which slowed at the start of the year.

The continuing claims data covered the week of the household survey from which March’s unemployment rate will be calculated. The four-week average of continuing claims declined 46,000 between the February and March survey periods, suggesting little change in the jobless rate this month.

(CGTN)