The number of Americans filing applications for unemployment benefits fell to a more-than-49-year low last week, but experts say the drop likely overstates the health of the stateside labour market as claims for several states, including California, were estimated.
Still, labour market conditions remain strong, which for now should help to temper fears of a sharp slowdown in economic growth. The economy is facing several headwinds, including a month-long partial shutdown of the federal government, which is starting to hurt both consumer and business confidence.
Figures released Thursday by the U.S. Labor Department revealed that initial claims for state unemployment benefits dropped 13,000 to a seasonally-adjusted 199,000 for the week ended Jan. 19, the lowest level since mid-November in 1969 when 197,000 applications were recorded. Data for the prior week was revised lower to show 1,000 fewer applications received than previously reported.
Economists had forecast claims rising to 220,000 in the latest week. The Labor Department said claims for California, Kansas, North Dakota, Virginia, West Virginia, and Hawaii were estimated last week because of Monday’s Martin Luther King Jr. holiday.
