News

Jobless rates hover at near pre-recession levels

Jobless rates hover at near pre-recession levels

JOBLESS:Corporate recruiters (R) gesture and shake hands as they talk with job seekers at a Hire Our Heroes job fair targeting unemployed military veterans and sponsored by the Cable Show, a cable television industry trade show. Photo: Reuters

By Lucia Mutikani

WASHINGTON (Reuters) – New applications for unemployment benefits held near their pre-recession levels last week, offering further evidence of the economy’s underlying strength.

Initial claims for state unemployment benefits ticked up 2,000 to a seasonally adjusted 304,000 for the week ended April 12, the Labor Department said on Thursday. They stayed close to a 6-1/2 year low touched the prior week.

Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 315,000.

U.S. Treasury yields hit session highs on the data, while stock index futures and the dollar were little changed.

The four-week moving average for new claims, considered a better measure of underlying labor market conditions as it irons out week-to-week volatility, fell 4,750 to 312,000, the lowest level since October 2007.

A Labor Department analyst said no states were estimated and there were no special factors influencing the state level data.

The claims data covered the survey week for April nonfarm payrolls. Despite last week’s increase, claims were down 19,000 between the March and April survey periods, which suggests an acceleration in job growth.

Job growth averaged about 195,000 per month in February and March, with the unemployment rate holding at near a five-year low of 6.7 percent over that period.

Labor market indicators such as job openings, the duration of unemployment and short-term unemployment, suggest some tightening in conditions.

On Wednesday, Federal Reserve Chair Janet Yellen said it was “quite plausible” the economy would be back to near full employment by the end of 2016.

The economy is gaining traction after being held down by an unusually cold and snowy winter. Retail sales and industrial production have been robust. Employment has picked up and there is a bit of inflation in the economy.

The health of the labor market will most likely determine when the U.S. central bank will start raising benchmark interest rates, which it has kept near zero since December 2008.

The Fed is expected to conclude its monthly bond buying program later this year and most economists expect the first rate hike will be in the second half of 2015.

The claims report showed the number of people still receiving benefits after an initial week of aid dropped 11,000 to 2.74 million in the week ended April 5. That was the lowest level since December 2007.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Recent Headlines

in National

Manufacturing, construction data point to sturdy U.S. growth

Fresh
An overall view of the assembly line where the BMW X4 is made at the BMW manufacturing plant in Spartanburg, South Carolina March 28, 2014.

U.S. manufacturing activity hit a nearly 3-1/2-year high last month, a sign the economy entered the third quarter on strong footing.

in Sports

Indianapolis Colts owner pleads guilty to intoxicated driving

James Irsay, owner of the NFL's Indianapolis Colts, is pictured in this undated handout photo obtained by Reuters March 17, 2014.

Billionaire James Irsay, owner of the Indianapolis Colts, was arrested in March after failing roadside field-sobriety tests.

in Sports

Phillies’ Cole Hamels, bullpen combine for no-hitter

Sep 1, 2014; Atlanta, GA, USA; Philadelphia Phillies starting pitcher Cole Hamels (35) throws the ball against the Atlanta Braves in the second inning at Turner Field.

Cole Hamels set up a combined no-hitter for the Philadelphia Phillies as they beat the Atlanta Braves 7-0 at Turner Field in Atlanta.

in National, World

ISIS releases beheading video of American Steven Sotloff

A masked Islamic State militant speaks next to a man purported to be U.S. journalist Steven Sotloff at an unknown location in this still image from an undated video posted on a social media website.

The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff.

in National, World

U.S. forces carry out operation against al Shabaab

shabaab

U.S. military forces carried out an operation on Monday against al Shabaab militants in Somalia.