The number of U.S. workers filing applications for jobless benefits last week fell to the lowest level in more than 40 years, another sign of a strengthening labour market.
The U.S. Labor Department reported Thursday that initial jobless claims, an indication of layoffs, decreased by 26,000 to a seasonally-adjusted 255,000 in the week ended July 18. That was the lowest level for initial claims since the week of Nov. 24, 1973.
Economists surveyed by The Wall Street Journal had forecast 278,000 new applications for jobless benefits last week.
While claims figures have been trending down for most of the year, the latest drop likely reflects some seasonal volatility. Two weeks earlier, claims touched their highest level since April. Data can be particularly bumpy in July, when auto makers shut down factories temporarily for retooling.
Jobless claims for the prior week were unrevised at 281,000.
The four-week moving average of claims, which smooths out often volatile weekly data, fell by 4,000 to 278,500. The average level of claims has been near that mark since early April.
