U.S. jobless claims drop further after hitting nearly 5-decade low

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WASHINGTON, April 18 (Xinhua) -- The number of initial jobless claims dropped further by 5,000 after hitting a nearly 5-decade low, signaling a very tight labor market in the United States, according to a report released by the U.S. Labor Department on Thursday.

In the week ending April 13, the number of people filing for U.S. unemployment benefits dropped to 192,000 from the previous week's revised figure, almost reaching the lowest level since September 1969, said the report.

The previous week's level was revised up by 1,000 from 196,000 to 197,000, said the Labor Department.

The report also showed that the four-week moving average of initial claims, a method to iron out data volatility, dropped by 6,000 to 201,250 last week while the previous week's average was revised up from 207,000 to 207,250.

A lower reading in jobless claims indicates lower overall layoffs. As an important leading indicator to reflect unemployment status, the reading of jobless claims remained below the 300,000 threshold, signaling a tight labor market in the United States.

Moderate tightness in the labor market would contribute to wage growth and indicate a strong momentum in economic growth. However, the U.S. Federal Reserve (Fed) noted that the tightness in the U.S. labor market is "restraining the rate of growth."

"A majority of districts cited shortages of skilled laborers, most commonly in manufacturing and construction. Contacts also reported some difficulties finding qualified workers for technical and professional positions," the Fed said in its latest periodic economic report named "Beige Book."

The strong employment could also be seen in the bigger picture. In march, the U.S. economy added 196,000 jobs, while the unemployment rate remained unchanged at 3.8 percent, according to the Bureau of Labor Statistics.

The Fed held interest rates flat during its latest policy meeting on March 19-20. The minutes of the meeting showed that the central bank was still "patient" on further rate hikes. Enditem

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