Claims for US jobless benefits tumble to 48-year low

WASHINGTON: First-time US unemployment insurance claims fell to a 48-year low last week in a fresh sign the pool of available workers is beginning to dry up, the government reported Thursday.

Amid signs of a possible resurgence in inflation, the increasing scarcity of labor could add to fears the Federal Reserve will raise benchmark interest rates in 2018 more than expected.

For the week ending February 24, new claims for jobless benefits dropped to 210,000, down 10,000 from the week before and the lowest level since December 6, 1969.

The result was very likely to be an all-time low, however, given demographic changes in the US labor force since the 1960s.

The less-volatile four-week moving average also dropped by 5,000 to 220,500, also the lowest level since December 1969.

Jobless benefits claims have now held below the symbolic level of 300,000 for nearly three years, the longest stretch since 1973.

Though they see big swings from month to month, claims can be used to gauge the health the labor markets and the prevalence of layoffs.

Analysts say US employers are now struggling to fill open positions, with the world's largest economy approaching or even surpassing full employment. Companies are reluctant to lay off employees for fear they may be unable to replace them.

Tight labor markets can spur inflation and current conditions could add to pressure on the central bank to raise interest rates four times this year, a prospect that sparked a sell-off on Wall Street last month.