The number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labour market, though a shortage of workers could keep the pace of hiring moderate in October.
Initial claims for state unemployment benefits fell 6,000 to a seasonally adjusted 290,000 for the week ended October 16, the Labor Department said on Thursday. That was lowest level since the middle of March in 2020, when the nation was in the early stage of the COVID-19 pandemic. It was also the second straight week that claims remained below 300,000 as employers hold on to workers in the face of an acute labour shortage.
Economists polled by the Reuters news agency had forecast 300,000 claims for the latest week. Claims have declined from a record high of 6.149 million in early April 2020. A 250,000-300,000 range for claims is seen as consistent with a healthy labour market.
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