US weekly unemployment benefit claims drop

WASHINGTON, Oct 18, (RTRS): New applications for US unemployment benefits dropped last week and the number of Americans on jobless rolls fell back to levels last seen in 1973, suggesting a further tightening in labor market conditions.

A strong labor market and robust economy likely keep the Federal Reserve on course to increase interest rates again in December. The US central bank raised rates in September for the third time this year and removed the reference to monetary policy remaining “accommodative.”

Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 210,000 for the week ended Oct 13, the Labor Department said on Thursday. Claims fell to 202,000 during the week ended Sept 15, which was the lowest level since November 1969.

Economists polled by Reuters had forecast claims slipping to 212,000 in the latest week. The Labor Department said claims for South and North Carolina continued to be affected by Hurricane Florence, which drenched the region in mid-September. Claims for Florida were impacted by Hurricane Michael.