First Time Jobless Claims Drop 13K, Matches Lowest Level Since 1973

In yet further confirmation of labor market strength, initial jobless claims fell a very sizable 13,000 in the April 9 week to 253,000. This matches the March 5 week for the lowest level since 1973, a time when the size of the labor market was much smaller. But the 4-week average is down only 1,500 to a 265,000 level that is slightly higher than the month-ago comparison and isn't pointing to new gains for the April employment report.

Continuing claims fell 18,000 in lagging data for the April 2 week to 2.171 million, a cycle low last matched in March. The 4-week average is down 10,000 at 2.178 million which is about 40,000 below the month-ago comparison and which does point to improvement. The unemployment rate for insured workers is unchanged at a very low 1.6 percent.

There are no special factors in today's report but there may be one in next week's report, that is the Verizon strike of 40,000 workers. Note that next week's reporting week for initial claims will be the April 16 week which is the sample week for the monthly employment report. Verizon aside, lack of unemployment is pointing to convincing strength for the labor market.

Recent History Of This Indicator:
Initial jobless claims the last several weeks have held rock steady near record lows. Forecasters see initial claims coming in unchanged at 267,000 for the April 9 week. Continuing claims have also been very positive, trending down to new record lows. Low levels of unemployment claims point to healthy demand for labor.