US initial jobless claims hit two-month low

25th Apr 2024 14:01

(Sharecast News) - Americans lined up for unemployment benefits at a decelerated pace in the week ended 20 April, according to the Labor Department, dropping to the lowest level seen since February.

Initial unemployment claims fell by 5,000 to 207,000, the lowest in two months and below market expectations for a reading of 214,000, providing more support for the notion of a tight labour market and giving the Federal Reserve more leeway to enact interest rate cuts in order to tackle stubborn inflation.

The four-week-moving average, which aims to strip out week-to-week volatility, declined by 1,250 to 213,250, while continuing claims declined by 15,000 to 1.78m.

Jobless claims declined in New York and Pennsylvania, offsetting increases in Massachusetts and Rhode Island.

Reporting by Iain Gilbert at Sharecast.com