The number of people filing initial applications for U.S. state unemployment benefits fell last week, the government reported Thursday, indicating a strong labor market. The Labor Department said jobless claims fell 5,000 to 271,000 last week, marking the 37th consecutive week that claims have been below 300,000, a level associated with an improving jobs market. Claims are near levels last seen in the early 1970s. The four-week moving average of jobless claims—a better gauge of labor-market trends because it smoothes weekly volatility—rose 3,000 to 270,750 last week, near a 42-year low. The average rose 7,500 between October and November, suggesting a slowdown in job creation from October's strong 271,000 gain. Economists expect the economy added at least 200,000 jobs this month, which will give the Federal Reserve (Fed) more confidence to raise its short-term interest rate at the December 15-16 meeting for the first time in nearly a decade. The jobless-claims report showed the number of people receiving unemployment benefits fell 2,000 to 2.18 million last week.
