New claims for unemployment benefits dropped 1,000 to 232,000 in mid-April, the Department of Labor reported Thursday, after scraping the lowest levels in decades in recent weeks.
Forecasters had expected new jobless claims to drift down slightly to around 230,000.
Low claims are a good sign. They suggest that few workers are getting laid off, and consequently that net job creation is strong.
And claims are low. Despite a tiny pickup in recent weeks, claims have been running a rate previously not seen in around 45 years.
“Weekly jobless claims at the lowest level since the 1970s points to severe labor shortages across the country especially for the manufacturing sector seeking skilled workers,” noted Chris Rupkey, chief financial economist for MUFG. “As the economy continues to grow so will the labor shortage.
Meanwhile, 1.86 million people were receiving unemployment benefits altogether in early April, according to Thursday’s release. That’s also nearly as small a number as anytime since early 1974.
That figure suggests that, increasingly, people have better alternatives in the jobs market than receiving unemployment benefts.
