US initial jobless claims tumbles to 42-year low

Washington, July 24: The number of Americans initially applying for unemployment aid tumbled last week to the lowest level in 42 years, the latest sign of a strengthening job market, the US Labour Department said. In the week ending July 18, the advance figure of seasonally adjusted initial claims for jobless benefits fell by 26,000 to 255,000, the lowest level since November 1973, Xinhua reported. But economists are sceptical of such a large drop, saying jobless claims in July tend to be volatile due to temporary layoffs and rehiring in the auto industry. The four-week moving average for new claims, a more reliable measure of the underlying trend of labour market conditions, edged down by 4,000 to 278,500 last week. Weekly jobless claims have been below the key 300,000 mark since March and coincided with strong job growth at the same period, indicating sustainable and solid improvement in the laboUr market.