The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly a month, a hopeful sign for the labor market.
Initial claims for state unemployment benefits decreased 42,000 to a seasonally adjusted 338,000, the Labor Department said on Thursday.
While recent data on claims have been clouded by seasonal volatility around the winter holiday period, Thursday’s report showed claims in a range that supports expectations for faster economic growth next year.
“With labor markets on the mend and consumer confidence on the rise, we look for broader economic improvement to continue pushing claims (lower),” said Gennadiy Goldberg, an analyst at TD Securities in New York.
New jobless claims have trended higher since September and are now roughly where they were during the early days of the 2007-09 recession. Economists, however, say the level of claims is still consistent with job growth, and other labor market indicators have pointed to a strengthening labor market.
The four-week moving average for new claims, which irons out week-to-week volatility, increased 4,250 to 348,000.
“The underlying trend remains favorable,” said Ryan Sweet, an economist at Moody’s Analytics in West Chester, Pennsylvania. “We will be able to muster stronger job growth in 2014.”
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via Jobless claims fall in positive sign for labor market | Reuters.
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