US jobless claims drop more than expected

The number of first time unemployment benefits claimants in the US fell more than expected last week, figures released on Thursday showed.

According to the Department of Labor, new claims fell by 16,000 to 278,000 in the week ending 23 January from an upwardly-revised 294,000 the previous week.

Economists had been expecting claims to come in at 282,000.

Meanwhile, the average of new claims over the last four weeks declined by 2,250 to a seasonally-adjusted 283,000.

The previous week’s average was revised up by 250 to 285,250.

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