US jobless claims drop more than expected

The number of Americans filing for unemployment fell more than expected last week, according to data from the Labor Department.

US initial jobless claims were down 25,000 to 234,000 from the previous week's level, which was revised up by 1,000 to 259,000.

Meanwhile, the four-week moving average came in at 250,000, down 4,500 from the previous week's average, which was revised up to 254,500 from 254,250.

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.

Pantheon Macroecononics said: "The trend in claims rebounded in March as more normal temperatures returned after two much warmer-than-usual months, and we expected a further 250-to-260K reading this week.The drop to 234K is likely due to seasonal adjustment problems caused by the shifting date of Easter from year-to-year. We don't expect to see a sustained trend at these levels. The labour market is in good health, but most of the variation in payroll growth over the past year has been due to shifts in demand, rather than changes in the pace of layoffs.

"We expect claims to return to 250K or so by the end of this month, by which time Easter seasonal problems will be over."