U.S. jobless claims at five-week low amid tight labor market

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(Bloomberg) – U.S. filings for unemployment benefits fell to a five-week low, suggesting tightening in a labor market already operating near full capacity, Labor Department figures showed Thursday.

Highlights of Jobless Claims (Week Ended Feb. 17)

Jobless claims decreased 7k to 222k (est. 230k) Continuing claims fell by 73k to 1.875m, a six-week low, in week ended Feb. 10 (data reported with one-week lag); biggest decline since mid-2015 Four-week average of initial claims, a less-volatile measure than the weekly figure, fell to 226,000 from the prior week’s 228,250

Key Takeaways

Claims are near the lowest level in almost 45 years, a reminder that employers are holding on to existing staff given shortages of qualified workers. Applications below the 300,000 tally are considered consistent with a healthy labor market. They’ve been under that figure every week since March 2015.

Analysts may pay extra attention to Thursday’s figures because they encompass the 12th of the month, the reference period for the Labor Department surveys that produce the monthly employment figures. The report for February is due March 9.

Other Details

Prior week’s reading was revised down to 229,000 from 230,000 Unemployment rate among people eligible for benefits fell to 1.3 percent from 1.4 percent Michigan and Illinois showed the biggest declines in unadjusted claims in latest week California, Hawaii, Maine, Puerto Rico, Virginia, West Virginia, Wyoming had estimated claims last week, according to the Labor Department

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