Jobless Claims in U.S. Drop to Lowest in Almost Five Decades

(Bloomberg) -- U.S. filings for unemployment benefits fell last week to the lowest level in almost five decades, indicating the job market remains tight, Labor Department figures showed Thursday.

Key Takeaways

The latest decline in weekly claims shows a tight labor market is increasingly pushing employers to hold on to existing staff amid a persistent shortage of qualified workers. Applications for jobless benefits are well below the 300,000 tally that's typically considered consistent with a healthy labor market.

Overall, the employment picture remains solid, with payrolls continuing to increase and the unemployment rate at the lowest since late 2000. Job growth will help sustain consumer spending, the biggest part of the economy.

Other Details

• Prior week's reading was revised to 220,000 from 222,000
• Unemployment rate among people eligible for benefits rose in prior week to 1.4 percent from 1.3 percent
• Maine had estimated claims last week, according to the Labor Department

--With assistance from Chris Middleton

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

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