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U.S Jobless Claims At 42 Year Low

U.S Jobless Claims At 42 Year Low

Jobless claims unexpectedly decreased to the lowest level since 1973, the US labor market remains a pillar of support in the largest economy in the world.

new unemployment benefit claims fell by 00 to 247,000 in the week ended April 16, data from the Labor Department showed Thursday. The median forecast of economists surveyed by Bloomberg called for 265,000 claims. The number of Americans already on benefits lists decreased to just over 15 years.

limited layoffs indicate that employers are still optimistic about the demand outlook of the United States. Economists expect the labor market to support consumer spending and help support economic growth after a weak first quarter.

"Overall, the trend remains one of the weak initial jobless and generally is still indicative of a strong labor market, which should continue to support spending and housing activity," Gregory Daco, head of macroeconomics US at Oxford Economics Ltd., said before the report. "It is reassuring that companies continue to hire and they are not dismiss the same."

estimates Bloomberg survey of economists for weekly jobless claims ranged from 245,000 to 285,000. Deposits, which are the lowest since the week ended November 24, 1973, fell an unrevised 253,000.

Although the claims were estimated to Washington, DC, there was nothing unusual in the data, according to the Labor department.

average four weeks

the four-week moving average of claims, a less volatile measure than the weekly figures, dropped to 260,500 from 265,000.

the number of people continuing to receive unemployment benefits decreased by 39,000 to 2,140,000 in the week ended April 9, the lowest number since November 00. The unemployment rate among people eligible for benefits held at 1.6 percent. These data are reported with a lag of one week

First claims were below 300,000. - A level economists generally associate rugged working conditions - for 59 consecutive weeks, the longest period since 1973.

Initial jobless claims reflect weekly firings them, and a low level generally supported applications coincided with faster job gains. Layoffs can also reflect Company- causes or specific to industry, such as cost reduction or restructuring of the company.

Intel Corp., the world's largest semiconductor company, eliminating 12,000 jobs as it seeks to reduce its dependence on the shrinking of the personal computer market and focus on areas such as chips for data center machines and devices connected to the Internet.

The cuts amount to 11 percent of the company's workforce and will be the largest since Intel has reduced staffing between 05 and 09, when he responded to the global financial crisis and competition that swept growth.

Bloomberg


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