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US jobless claims tumble

Washington - US initial jobless claims tumbled 3% last week, government data showed on Thursday, reinforcing signs the troubled labour market is on the mend.

The number of first-time claims for unemployment insurance payments dropped to a seasonally adjusted 382 000 in the week ending April 2, a decrease of 10 000 from the prior week, the Labour Department reported.

The four-week moving average, which helps to smooth weekly volatility in the indicator, was 389 500, a decrease of 5 750 from the previous week's revised average of 395 250.

The initial claims level has held mostly below 400 000 since the beginning of February.

The department's March jobs data published on Friday pointed to a slow recovery underway as the unemployment rate ticked down to 8.8% from 8.9% in February, thanks to strong job creation in the private sector.

The jobless rate has shed a full percentage point since November, the first such drop since 1984, as the economy fights back from a recession that officially ended in June 2009.

The economy added 216 000 nonfarm jobs last month, an increase of 11% from February and the sixth consecutive month of overall job gains.

However, the depth of the jobs crisis remained: The number of unemployed persons stood at 13.5 million.

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