The number of Americans filing for unemployment benefits decreased more than expected last week, pointing to tightening labour market conditions that should support the stateside economy this year.
Figures released Thursday by the U.S. Labor Department revealed that initial claims for state unemployment benefits declined 14,000 to a seasonally-adjusted 246,000 for the week ended Jan. 28.
Data for the prior week were revised to show 1,000 more applications received than previously reported. Claims have now been below 300,000, a threshold associated with a healthy labour market, for 100 straight weeks. That is the longest stretch since 1970, when the labor market was much smaller.
The labour market is at or close to full employment, and the U.S. Federal Reserve said on Wednesday it expected labour market conditions would strengthen "somewhat further."
The Fed, which has forecast three interest rate increases this year, kept its benchmark overnight lending rate unchanged in a range of 0.5% to 0.75% at the end of its latest two-day policy meeting. The U.S. central bank increased borrowing costs in December.
Economists had forecast first-time applications for jobless benefits falling to 250,000 in the latest week. A department analyst said there were no special factors influencing last week's data and no states had been estimated.
