Economic Report: Jobless Claims Fall To Lowest Level In 48 Years

Fries and a job? Employees at potato processing plant. Millions of Americans have found jobs in recent years and layoffs are near an all-time modern low.

The numbers: The rate of layoffs in the U.S. fell in late April to the lowest level since 1969, yet another sign a roaring labor market shows no sign of cooling off.

Initial jobless claims fell by 24,000 to 209,000 in the week ended April 21, the government said Thursday. Economists surveyed by MarketWatch had forecast a 230,000 reading.

The more stable monthly average of claims declined by 2,250 to 229,250, the government said Thursday.

The number of people already collecting unemployment benefits, known as continuing claims, dropped by 29,000 to 1.84 million.

What happened: Jobless claims continue to fall, though the latest decline may have been exaggerated by the timing of the Easter holiday and spring break.

In New York, for example, claims soared in mid-April and fell sharply a week later. Some school employees such as bus drivers and cafeteria workers can collect benefits for the week the miss when school is closed.

Read: Signs of higher U.S. inflation are popping up everywhere

Whatever the case, layoffs are now near the lowest level since early in the first term of President Richard Nixon.

Big picture: Excellent. Most workers who want a job can find one and companies are still hiring at a rapid pace. Wages are also rising, though not as fast as they normally do when the labor market is this strong.

The strength of the labor market all but assures the nearly nine-year-old economic expansion will continue for some time to come and perhaps set a record.

Read: U.S. economy hits brakes in early 2018, but it’s gassed up and ready to go for spring

What they’re saying: “It appears that the dip is due to an anomaly related to New York school workers,” said Thomas Simons, senior money market economist at Jefferies. “The BLS indicated that these workers returned to work this week, leading to the big decline in the headline number. We will probably see a return to the 220,000 to 240,000 range that has prevailed for the majority of this year.”

Market reaction: The Dow Jones Industrial Average DJIA, +0.67% and Standard & Poor’s SPX, +0.63% were set to open higher in Thursday trades. The 10-year Treasury yield TMUBMUSD10Y, -1.27%   was little changed at 2.99%.

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