US jobless claims near 45-year low

New claims for US unemployment benefits dropped last week, remaining near their lowest level in 45 years as employers struggle to fill open positions, according to government data released on Thursday.

Though the weekly figures are volatile, the data were consistent with reports from the Federal Reserve and business groups indicating the supply of available workers is drying up.

The result also pointed to another strong month of job creation in February as the data were collected during the survey week for the labour department’s monthly employment report, which will be released on March 9.

For the week to February 17, new jobless claims fell 7,000 from the prior week to 222,000, close to the 45-year low of 216,000 recorded in the middle of January. The result undershot a consensus forecast, which called for an increase to 233,000 claims for the week. The four-week moving average also fell 2,250 to 226,000.

Though the numbers can see big swings from week to week, the claims data can be used to gauge the strength of jobs markets. With mounting signs of a widespread labour shortage, employers have reduced layoffs to record low levels partly out of fear they may not be able to replace the workers they let go.

Jobless claims have remained below 300,000 for nearly three years, the longest streak since 1972. But analysts say the current low trend is likely the lowest ever, given changes in the size of the population and labour force.

The Fed is widely expected to raise the benchmark interest rate in March for the first time this year and most economists expect four hikes in 2018.