US initial jobless claims hit lowest level in five weeks

22nd Feb 2024 11:59

(Sharecast News) - Americans lined up for state benefits at a decelerated pace in the week ended 17 February, according to the Labor Department, hitting the lowest level for new claims in five weeks.

The number of people claiming unemployment benefits fell by 12,000 to 201,000 last week, well below market expectations for a reading of 218,000 and the lowest claim count since the 16-month low of 189,000 recorded five weeks earlier.

Continuing claims fell by 27,000 to 1.86m, coming in better than expectations for a reading of 1.88m, indicating that unemployed Americans have had an easier time in finding employment. The four-week moving average, which aims to strip out week-to-week volatility, dropped by 3,500 to 215,250.

Thursday's reading comes hot on the heels of January's strong jobs report, underscoring historical tightness in the US labour market and adding leeway for the Federal Reserve to keep interest rates firmly in place if inflation remains elevated.

Reporting by Iain Gilbert at Sharecast.com