AlHijjah 24, 1436, Oct 8, 2015, SPA -- The number of people filing initial applications for U.S. state unemployment benefits fell more than expected last week to near a 42-year low, the government reported Thursday, indicating tightening in the labor market despite the recent slowdown in hiring. The Labor Department said jobless claims fell 13,000 to 263,000 last week, the lowest level since mid-July, when the number of claims dropped to its lowest since 1973. Hitting such a historical low is remarkable considering the U.S. workforce has grown considerably since the 1970s. Last week also was the 31st consecutive week that jobless claims remained below the 300,000 level typically associated with a strengthening labor market. The four-week moving average of jobless claims—a better gauge of labor-market trends because it smoothes weekly volatility—fell 3,000 to 267,500. The total number of people receiving U.S. state unemployment benefits rose 9,000 to 2.2 million last week. While businesses are retaining their workers, they have been less eager to add new employees. Employers added only 142,000 jobs in September and 136,000 in August, figures well below the averages in previous months of nearly 200,000. The slowdown in hiring has increased expectations the Federal Reserve (Fed) will wait until early 2016 to raise interest rates for the first time in nearly a decade.
