US / Jobless claims fall sharply to five-year low

The number of Americans filing new claims for jobless benefits fell sharply last week to its lowest level since the early days of the 2007-09 recession, suggesting the job market is still healing despite weakness in the broader economy.Other data on Thursday showed a narrowing of the U.S. trade gap in March, although drops in imports and exports during the month gave potential warning signs over the strength of domestic and foreign demand.Initial claims for state unemployment benefits dropped 18,000 to a seasonally adjusted 324,000 the Labor Department said.The claims report runs counter to a growing number of signals that economic activity softened in March and April, a phenomena economists have dubbed the spring swoon because it also happened in the previous two years.The data on claims has no direct bearing on the Labor Departments monthly employment report for April due on Friday. However, it suggests that while employers have cut back on hiring, they are feeling less pressure to lay workers off.”Layoffs are not an issue. Companies are reluctant to hire. This is keeping the jobs market in a rut,” said Ryan Sweet, an economist with Moodys Analytics in West Chester, Pennsylvania.Analysts had expected 345,000 new jobless claims last week, and U.S. stock index futures added to gains following the release of the claims data, while yields on U.S. government debt rose.

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via Jobless claims fall sharply to five-year low | Reuters.