Downward trend in weekly US jobless claims resumes

The latest tally of weekly unemployment claims showed that the US job market continued to tighten.

According to the US Department of Labor, over the week ending on 26 February, the number of people filing for unemployment claims for the first time declined by 18,000 to 215,000.

The four-week moving average, which aims to smooth out some of the volatility in the readings, fell by 6,000 to 230,500.

Secondary unemployment claims referencing the week that ended on 19 February meanwhile edged up by 2,000 to 1.476m.

"Claims are headed back to the pre-Omicron lows in the wake of the collapse in cases and hospitalizations," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

"Demand for discretionary services is rebounding strongly, easing the pressure on businesses hit hard by people’s retreat from social activity when the variant emerged. These data tell us nothing about tomorrow’s payroll report, but the renewed downward trend augurs well for March."