First-time claims for unemployment benefits fell to 262,000 for the week ending April 25, the lowest level in 15 years.
The drop of 34,000 jobless claims reported by the the Department of Labor Thursday morning beat expectations and signaled strength in the jobs market, only one day after a disappointing report on economic output raised worries about the U.S. economic recovery.
The 262,000 jobless claims were the fewest since April of 2000.
The four-week moving average of jobless claims also fell, by 1,250 to 283,750.
Fewer laid-off workers claiming unemployment insurance benefits is considered a positive sign for job growth. The Labor Department reports unemployment claims weekly, while it publishes payroll job growth and the unemployment rate on a monthly basis.
The decade-plus low in unemployment claims is good news and should temper fears about the recovery raised by the disappointing jobs report for March. The Bureau of Labor Statistics reported in its first estimate for March that the economy added just 126,000 payroll jobs in the month. It also revised down the past two months’ gains by 69,000, raising concerns that the labor market recovery slowed down during the winter months.
Altogether, there was a slight increase in the number of people receiving unemployment benefits to 2,440,229 for the week ending April 11. But the ranks of unemployment insurance beneficiaries, who can receive up to 26 weeks of federal benefits, have shrunk in number from 2,822,340 at the same time last year.
