Weekly Jobless Claims Fall to Lowest Level Since Nixon Era
he number of Americans filing new applications for unemployment benefits fell last week to its lowest level in nearly 42 years, suggesting the labor market maintained a solid pace of job growth in July.
The sturdy jobs picture together with a strengthening housing market brings the Federal Reserve a step closer to raising interest rates this year.
Initial claims for state unemployment benefits declined 26,000 to a seasonally adjusted 255,000 for the week ended July 18, the lowest level since November 1973, the Labor Department said Thursday. Claims for the prior week were unrevised.
However, last week's drop likely exaggerates the strength of the labor market as claims are volatile during summer when automakers usually shut assembly plants for annual retooling.
Some firms keep production lines running, which throws off a model the government uses to smooth the data for seasonal variations. A Labor Department analyst said there were no special factors influencing the data.
