Share

US jobless claims fall to match lowest level since 1973

Washington - The number of Americans submitting applications for jobless benefits unexpectedly declined last week to match the fewest in four decades.

Initial unemployment claims dropped by 7 000 to 255 000 in the week ended October 10, a Labour Department report showed on Thursday. The median forecast of economists surveyed by Bloomberg called for 270 000 applications. The decline brought the monthly average to its lowest level since December 1973.

“These numbers are pretty impressive,”said Brian Jones, senior US economist at Societe Generale in New York, who correctly projected the number of applications. “Both the initial and continuing claims numbers are consistent with the fact that we have a labor market that’s fairly tight and continues to improve.”

Steady domestic demand even in the face of tepid global growth is encouraging managers to maintain headcounts. At the same time, additions to payrolls have slowed the last two months as diminished economic prospects abroad prompt some employers to limit hiring.

Jobless claims matched the low reached in July - the fewest since November 1973. Estimates in the Bloomberg survey of 45 economists for this week ranged from 255 000 to 275 000. The number of applications in the previous week was revised to 262 000 from an initially reported 263 000.

No states were estimated last week and there was nothing unusual in the data, according to the Labour Department.

Monthly average

The four-week average of claims, a less-volatile measure than the weekly figure, decreased to 265 000 from 267 250 in the prior week.

The number of people continuing to receive jobless benefits declined by 50 000 to 2.16 million in the week ended October 3, the lowest level since November 2000. The unemployment rate among people eligible for benefits held at 1.6%. These data are reported with a one-week lag.

Claims, since the beginning of March, have held below the 300 000 level that economists say is consistent with strength in the labour market.

While dismissals have remained limited, hiring managers have pulled back on adding to staffs amid sluggish global growth. Employers took on 142 000 workers in September and Labour Department revisions to the data subtracted 59 000 jobs from the prior two months.

Wages stagnated and the jobless rate held at a seven-year-low 5.1% as Americans left the workforce.

Federal Reserve policy makers are weighing growth, inflation and labor-market data as they debate whether to raise the benchmark interest rate this year for the first time since 2006. The officials next meet October 27 to  October 28.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders