US jobless claims drop as labour slack eases

The number of Americans filing for unemployment benefits fell last week, unwinding half of the prior period’s jump and suggesting the labour market was tightening despite a recent slowdown in job growth.

Initial claims for state unemployment benefits declined 10,000 to a seasonally adjusted 245,000 for the week ended 3 June, the Labor Department said yesterday.

The report followed data on Tuesday showing job openings at a record high in April. “There is no sign of a pickup in the rate of layoffs. Against this backdrop of high job openings, firms appear to be holding on to their workers,” said John Ryding, chief economist at RDQ Economics in New York.