New applications for unemployment benefits south of the border fell last week, pointing to sustained labour market strength in the U.S. despite a sharp slowdown in job growth in March.
Figures released Thursday by the U.S. Labor Department showed initial claims for state unemployment benefits dropped 9,000 to a seasonally-adjusted 233,000 for the week ended April 7. Data for the prior week was unrevised.
Economists had forecast claims falling to 230,000 in the latest week. Claims tend to be volatile around this time of year because of different timings of the Easter and school spring breaks, which can throw off the model that the government uses to smooth the data for seasonal fluctuations.
The American economy created 103,000 jobs in March, the fewest in six months. Economists largely dismissed the slowdown as payback after hefty job gains in February. They also blamed cooler temperatures for the moderation in hiring.
The labour market in the U.S. is considered to be near or at full employment. The unemployment rate is at a 17-year low of 4.1%, not too far from the Federal Reserve's forecast of 3.8% by the end of this year.
Minutes of the U.S. central bank's March 20-21 policy meeting published on Wednesday offered an upbeat assessment of the jobs market, noting that "most participants described labor market conditions as strong."
