Decline in Jobless Claims Shows U.S. Labor Demand Remains Robust

(Bloomberg) -- The decline in filings for U.S. unemployment benefits last week underscores steady demand for workers in a tightening job market, Labor Department figures showed Thursday.

Key Takeaways

The latest figure is little changed from the average so far this year. A shortage of qualified workers is making employers reluctant to let go of the people they already have, keeping the underlying trend in jobless claims near the lowest level in more than four decades.

Other recent reports such as business hiring and job openings indicate solid demand for labor. The Labor Department's monthly employment report on Friday is projected to show payrolls climbed in July, while the unemployment rate fell. Job growth is sustaining consumer spending, the biggest part of the economy.

Other Details

• Prior week's reading was revised to 245,000 from 244,000
• Unemployment rate among people eligible for benefits held at 1.4 percent, where it's been since early April
• No states estimated claims last week and there was nothing unusual in the data, according to the Labor Department

--With assistance from Jordan Yadoo

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net.

To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle