New applications for U.S. unemployment benefits unexpectedly held near more than a 48-year low last week, pointing to a further tightening of labor market conditions.
Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 211,000 for the week ended May 5, the Labor Department said on Thursday. Claims dropped to 209,000 during the week ended April 21, which was the lowest level since December 1969.
Economists polled by Reuters had forecast claims rising to 218,000 in the latest week.
The labor market is considered to be near or at full employment, leading to a slowdown in job growth as employers struggle to find skilled workers. A government report on Tuesday showed job openings rising to a record 6.6 million in March.
Hiring moderated in March and April after surging in February. The unemployment rate dropped to near a 17½-year low of 3.9 percent in April from 4.1 percent in March. The jobless rate is within striking distance of the Federal Reserve’s forecast of 3.8 percent by the end of this year.
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