Jobless Claims in U.S. Drop to Lowest Level Since 2007

By Victoria Stilwell Apr 10, 2014 10:05 AM ET

The fewest number of Americans since before the last recession filed applications for unemployment benefits last week, pointing to more progress in the labor market.

Jobless claims decreased by 32,000 to 300,000 in the week ended April 5, the lowest since May 2007, a Labor Department report showed today in Washington. The figure was lower than the most optimistic forecast in a Bloomberg survey of 52 economists. The median estimate called for 320,000 claims.

Fewer dismissals will help pave the way for a pickup in hiring as demand recovers from harsh winter weather, providing a bigger boost to the economy. Federal Reserve policy makers are monitoring progress in the labor market as they continue to scale back their bond-buying program based on an improving economic outlook.

“We’re moving in the right direction,” said Thomas Simons, a money market economist at Jefferies LLC in New York, whose forecast for 310,000 claims was the lowest in the Bloomberg survey. “The underlying trend for claims is a gradual drift lower. Looking at the entire history of claims, you don’t get too far beyond this level, even in a very healthy economy.”

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http://www.bloomberg.com/news/2014-04-10/jobless-claims-in-u-s-decline-to-lowest-level-since-may-2007.html