- Jason Furman, Chairman of the President's Council of Economic Advisors
The number of Americans applying for unemployment benefits declined more than expected last week, adding to signs labour market conditions continued to tighten. Initial claims for jobless benefits decreased 5,000 to a seasonally adjusted 267,000 in the week ended December 19, near levels last seen in late 1973, according to the Labor Department. Economists had projected claims falling to 270,000. Claims have been below 300,000, a threshold associated with a strong labour market, for 42 weeks in a row, the longest stretch since the early 1970s. The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, climbed 1,750 to 272,500 last week. The report also showed the number of people still receiving benefits after an initial week of aid dropped 47,000 to 2.20 million in the week ended Dec. 12. The four-week moving average of the so-called continuing claims rose 10,000 to 2.21 million.
Improvements in the labour market is helping to boost consumer spending, supporting the world's biggest economy as it faces the headwinds of a strong Dollar, slowing global growth, spending cuts by energy firms and an inventory overhang. The US jobless rate was at 5.0% last month, the lowest level in more than seven years.
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