New applications for unemployment benefits among Americans sank to the lowest level in 42 years, pointing to continued improvement in the labour market south of the border.
Figures released Thursday by the U.S. Labor Department reveal initial claims fell by 6,000 to 247,000 in the seven days ended April 16, the the lowest level since the week of Nov. 24, 1973, when Watergate was the top news item.
Economists were expecting claims to move higher to 265,000. The department added average of new claims over the past month fell 4,500 to a seasonally-adjusted 260,500, also close to post-recession lows.
The four-week average smooths out sharp fluctuations in the more volatile weekly report and is seen as a more accurate predictor of labor-market trends.
The scarcity of layoffs and steady rate of hiring appears to contradict weak gross domestic product, which is expected to decelerate in the first quarter from an already lacklustre 1.4% rate in 2015's fourth quarter.
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