Jobless Claims Hint at Strengthening Labor Market

Jobless Claims Hint at Strengthening Labor Market

People wait in line to meet a job recruiter at the UJA-Federation Connect to Care job fair in New York March 6, 2013. Credit: Reuters/Shannon Stapleton
People wait in line to meet a job recruiter at the UJA-Federation Connect to Care job fair in New York March 6, 2013.
Credit: Reuters/Shannon Stapleton

(Reuters) – The number of Americans filing new claims for jobless aid fell last week to its lowest level in nearly 5-1/2 years, signaling labor market resilience in the face of fiscal austerity.

The job market buoyancy, flagged last week by a relatively strong April employment report, eased fears of an abrupt economic slowdown.

“We are not getting a slowing in the second quarter. The claims data provide another set of confirmation that the labor market is healing,” said Michael Strauss, chief economist at Commonfund in Wilton, Connecticut.

Initial claims for state unemployment benefits fell 4,000 to a seasonally adjusted 323,000, the lowest level since January 2008, the Labor Department said on Thursday.

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