U.S. Jobless Claims Decline to a Five-Week Low of 234,000

(Bloomberg) -- Filings for U.S. unemployment benefits declined to a five-week low, highlighting a resilient job market, a Labor Department report showed Thursday.

Key Points

• Jobless claims slumped by 25,000 to 234,000 (forecast was 250,000) in the week ended April 1
• Weekly decline was biggest since April 2015; prior week revised to 259,000 from 258,000
• On an unadjusted basis, applications slumped in California, New York and Pennsylvania -- more than reversing the prior week's increases for these states
• The number of people continuing to receive jobless benefits dropped by 24,000 to 2.03 million in the week ended March 25 (data reported with one-week lag)

Big Picture

Claims are hovering near the lowest level since the early 1970s, indicating employers remain reluctant to reduce staff amid steady demand and a shortage of workers with relevant skills and experience. Economists consider weekly filings below 300,000 as consistent with a healthy labor market. The data, which have been volatile lately, come a day before the monthly payrolls report that is projected to show the addition of 180,000 workers in March following a 235,000 advance the prior month.

Other Details

• Four-week average of initial claims, a less-volatile measure than the weekly figure, fell to 250,000 from 254,500 in the prior week
• The unemployment rate among people eligible for benefits held at 1.5 percent
• Claims last week were estimated for Louisiana
• There was nothing unusual in the broader data, according to the Labor Department

--With assistance from Kristy Scheuble

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