The number of Americans filing new jobless claims fell more than expected last week, according to a report released by the Labor Department Thursday. Economists polled by Reuters had forecast claims falling to 305,000 last week, but first-time claims for state unemployment benefits fell by 36,000 to a seasonally adjusted 289,000 for the week ended March 7.
The data reversed some of the prior two weeks’ increases. However, the previous reports had pushed claims well above the 300,000 mark, and it remains slightly above still.
While some economists will blame harsh weather caused for the recent volatility in claims this year, the bottom line is that the abysmally low labor participation rate reduces the pool of eligible Americans. Regardless of the decline, it should not hover from a high 200,000 to low 300,000 range with so few eligible to collect first-time unemployment benefits.
A Labor Department analyst said there was nothing unusual in the state-level data.
The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,750 to 302,250 last week. Thursday’s claims report showed the number of people still receiving benefits after an initial week of aid fell 5,000 to 2.42 million in the week ended Feb. 28.
