Fewer people are applying for unemployment benefits than at any time since the Nixon administration.
The four-week average for new jobless claims fell to 265,000 for the week ending Oct. 10, the Department of Labor reported Thursday.
That was the lowest number of claims since Dec. 15, 1973.
The average was dragged down by the filing of just 255,000 first-time claims in the week, on a seasonally-adjusted basis.
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Government officials and private-sector economists see low numbers of people applying for unemployment benefits as a sign that layoffs are scarce and the jobs market is healthy.
In recent months, jobless claims have scraped the lowest levels in decades at the same time that the monthly jobs reports have shown only tepid payroll growth. The split between the two indicators has caused some economists to question whether fewer people are bothering to claim unemployment benefits they’re eligible for as the jobs outlook has improved.
In any case, the extremely low level of jobless claims will provide at least one positive indicator for officials at the Federal Reserve, who will wrestle with whether the economy is strong enough for tighter money at meetings in Washington at the end of this month and in December.
The overall improvement in the jobs outlook over the course of the recovery is clear. The total number of people receiving benefits, which are available for up to 26 weeks, was 2,158,000 at the beginning of October. That was the lowest such number since late 2000, long before the financial crisis and during the dotcom boom.
