U.S. jobless benefits applications hit their lowest level in 15 years, which reflects a positive outlook in the strength of the labor market.
Bloomberg Business cites a Labor Department report that first-time filings for unemployment insurance fell by as much as 32,000 to 262,000 as of April 25, the lowest number since April 15, 2000. According to Nasdaq, analysts had expected initial jobless claims to fall by 6,000 to 290,000.
As of the week ending April 18, continuing jobless claims dropped to 2.253 million from 2.327 million in the previous week. Analysts had initially pegged these numbers at 2.3 million.
Whereas jobless claims are falling, job openings are at a 14-year high, and with a stronger growth forecast after the first quarter, companies are keen on maintaining their headcounts.
A steady low number of firings normally means strength in hiring. According to a Bloomberg survey conducted April 3-8, "payrolls will probably average 226,000 this year," which is the best after a 260,000 monthly average in 2014.
Based on Labor Department data from earlier this month, job openings increased to 5.13 million in February - the highest record since January 2001. There are approximately 1.7 unemployed Americans per job opening, which matches the lowest level since November 2007.
