Initial jobless claims drop to lowest level since 1973

The number of Americans filing for unemployment benefits unexpectedly fell last week, according to the Labor Department.

US initial jobless claims fell by 6,000 to 247,000 from the previous week’s unrevised level of 253,000.

This marked the lowest level since 24 November 1973, when claims were at 233,000, and the 59th consecutive week claims were below 300,000.

Analysts had been expecting jobless claims to rise to 263,000.

The four-week moving average of new claims was 260,500, down 4,500 from the previous week’s unrevised 265,000.

The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.

"Easter last fell on March 27 in 2005, and if the unadjusted data now follow the post-Easter pattern from that year, the headline adjusted claims number will rise to about 265K next week and 280K the following week. Behind all the noise, we think the underlying trend is still running in the low 270s, consistent with at robust 200K-plus trend in payrolls," Ian Shepherdson, chief US economist at Pantheon Macroeconomics, said in a research note sent to clients.