The economy got an early Christmas present Thursday as the Labor Department announced that jobless claims last week fell to 267,000, the lowest level in decades.
The number of Americans filing for unemployment benefits fell to a level last seen in late 1973, a larger dip than many economists had expected. The improved labor market underscores the ongoing economic improvement, although some of last week’s decline could be attributed to difficulties adjusting the figures during the holiday season.
Initial claims for state unemployment benefits fell 5,000 to land at 267,000 for the week that ended Dec. 19, the Labor Department said. Some economist had expected benefit claims to decline to just 270,000.
The economic improvement is less dramatic when the average of initial claims over the last month is measured — a standard that many consider to be a more reliable measure of the labor market. Under that standard, claims rose by 1,750 to 272,500. However, that’s still near a 15-year low.
And the number of people who want but can’t find a full time job remains elevated by historical standards, reflecting that the economic recovery has progressed much more slowly than after other big U.S. eocnomic declines in the past.
