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The numbers: The number of Americans who applied for unemployment benefits in mid-February fell to a five-week low of 201,000 and signaled the U.S. labor market is still going strong.
Initial jobless claims fell by 12,000 from 213,000 in the prior week, the government said Thursday.
The decline may have been exaggerated by an usually large drop in unemployment filings in California, however.
Whatever the case, new jobless claims have ranged from 189,000 to 227,000 a week early in the new year, a remarkably low level from a historical perspective.
Economists polled by The Wall Street Journal had forecast new claims to total 216,000 in the seven days ending Feb. 17, based on seasonally adjusted figures.
Big picture: A muscular U.S. labor market shows little sign of turning flabby despite higher interest rates meant to slow the economy.
Low unemployment is likely to fuel consumer spending and keep the economy out of recession until the Federal Reserve cuts interest rates later this year as expected.
Key details: New jobless claims fell in 45 of the 53 states and territories that report these figures to the federal government.
The number of people collecting unemployment benefits in the U.S., meanwhile, dipped by 27,000 to 1.86 million.
These so-called continuing claims have risen steadily since last year, it should be noted, in a sign it’s taking longer for people to find new jobs. They are now at roughly the same level as they were before the pandemic.
Looking at actual or unadjusted figures, initial jobless claims slid below 200,000 again. That’s another sign of the durability of the U.S. labor market.
Market reaction: The Dow Jones Industrial Average
DJIA
and S&P 500
SPX
were set to open higher in Thursday trading. Stocks have gotten a lift from strong Nvidia
NVDA,
earnings.
