U.S. jobless claims fall to 189,000, lowest level in 57 years

The number of Americans filing new claims for unemployment benefits fell to 189,000 in the week ended October 31, its lowest level in 57 years, the Labor Department said on Thursday. The figure fell by 6,000 claims from the revised 195,000 of the previous week and came in below the 196,000 expected by economists polled by Reuters.

The reading matched the level reached in mid-July, the lowest since 1969, according to Reuters. Claims have stayed below 200,000 for eight straight weeks and have not topped 230,000 in any week this year, according to the Associated Press. The four-week moving average, which smooths out weekly swings, fell to 194,750.

The data point to layoffs remaining scarce, even as hiring has slowed. Uncertainty over the drawn-out conflict in the Middle East is constraining hiring, according to Reuters' analysis. The report also showed that worker productivity grew in the third quarter by more than expected.

As a counterweight, the number of people continuing to receive benefits after an initial week of aid, a proxy for hiring, rose by 23,000 to 1.718 million in the week ended October 24, a figure that remains low by historical standards.

The next test for the labor market comes this Friday, November 6, when the Labor Department releases the October employment report. The weekly claims figures do not feed into that report, because they fall outside the monthly survey period.

Photo: Reuters

Source: Reuters