Claims for U.S. unemployment benefits dropped last week to the lowest level in four years, adding to recent reports showing signs of health in the economy.
Jobless claims fell 6,000 to 357,000 in the week ended March 31, the fewest since April 2008, the U.S. Labor Department reported today in Washington. The median forecast of 43 economists in a Bloomberg News survey estimated a decrease to 355,000. The number of people on unemployment benefit rolls also dropped, while those getting extended payments increased.
The improved labour market, rising stock prices and easier credit are lifting U.S. consumer confidence and spending, which accounts for 70% of the economy. A report tomorrow may show the world’s largest economy added more than 200,000 jobs in March for a third consecutive month, the longest streak of similar increases since late 1999 early 2000.
Claims estimates in the Bloomberg survey ranged from 350,000 to 370,000. The four-week moving average, a less-volatile measure than the weekly figures, decreased to 361,750 last week, from 366,000.
Companies are retaining workers and hiring amid robust sales and growing consumer confidence. Manufacturing expanded at a faster pace in March from a month earlier, the Institute for Supply Management reported this week, and a measure of employment rose to the highest level since June. Cars and light trucks sold at a 14.3-million annual rate in March, capping the strongest quarter in four years.
The total number of people receiving jobless benefits fell by 16,000 in the week ended March 24 to 3.34 million.
In addition to the jobless claims, the number of Americans receiving extended benefits under federal programs increased by about 17,000 to 3.26 million in the week ended March 17.
The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 2.6%, today’s report showed.
Twenty-six states and territories reported a decline in claims, while 27 reported an increase. These data are reported with a one-week lag.
