US initial jobless claims fall to 14-year low
US initial jobless claims fell from 308,000 to 265,000 in the week ending 24 January, reaching their lowest level in 14 years.
The decline, the biggest since November 2012, was much larger than anticipated by analysts who had called for a reading of 300,000.
The decline led the four-week average of initial claims to fall to 299,000 from 307,000, while continuing claims for the week ending 17 January also slid, dropping to 2.38m from an upwardly revised 2.46m the prior week.
The four-week average of continuing jobless claims edged higher to 2.44m on volatility in recent weeks, and the insured unemployment rate was unchanged at 1.8%
“The continued improvement in unadjusted claims data from year-ago levels is consistent with our view that labor markets remain solid,” analysts at Barclays said in a note.
“We look for claims data to reflect this underlying strength in coming weeks as seasonal volatility dissipates, albeit at a more measured pace than this morning’s data.”