US jobless claims at three-year low

The number of Americans filing new claims for jobless aid plunged last week to the lowest in more than three years, the government says in a report suggesting a quickening economic pace.

    Hint of recovery is good news for President Bush's re-election attempt

    First-time claims for state unemployment insurance fell an unexpectedly steep 14,000 in the week ended 3 April to 328,000 from 342,000 the previous week, the Labour Department said on Thursday.

    The figures place such claims at their lowest level since just before President George Bush took office.

    The size of the fall surprised analysts and led many to predict that a trend towards more hiring was in place, especially after last month's pickup in job creation.

    "Clearly good news," said economist Pierre Ellis of Decision Economics. in New York. "What appears to be the resumption of new hiring should combine with this reduction in
    layoffs to promote strong employment growth."

    Financial markets were buoyed by the report, with the dollar rallying against other currencies while stocks rose.

    Economists surprised

    The jobless claims drop far exceeded forecasts by Wall Street economists who had predicted a dip of just 2,000. The Labour Department said last week's level was the smallest since
    320,000 in the week of 13 January 2001.

    Last week, the government reported a surge in new jobs during March with 308,000 positions added to payrolls outside the farming sector.

    The jobless claims fall adds to evidence that hiring conditions may be improving after a long drought.

    The employment market has been a hot issue in the campaign for November's US presidential elections, with opposition

    Democrats highlighting the net loss of jobs since Bush took office.

    Critics also say the unemployment figures look better than they should because hundreds of thousands of workers have given up seeking work and therefore no longer claim welfare payments.

    SOURCE: Reuters


    YOU MIGHT ALSO LIKE

    Double standards: 'Why aren't we all with Somalia?'

    Double standards: 'Why aren't we all with Somalia?'

    More than 300 people died in Somalia but some are asking why there was less news coverage and sympathy on social media.

    The life and death of Salman Rushdie, gentleman author

    The life and death of Salman Rushdie, gentleman author

    The man we call 'Salman Rushdie' today is not the brilliant author of the Satanic Verses, but a Picassoesque imposter.

    The Beirut Spy: Shula Cohen

    The Beirut Spy: Shula Cohen

    The story of Shula Cohen, aka The Pearl, who spied for the Israelis in Lebanon for 14 years.