The US Labor Department said that unemployment benefits fell back to four-year low level. Unemployment insurance payments applications dropped from14,000 to 351,000 in the week ended on 10th March’12.
Private sector had added 227,000 jobs in February. Now again this week claims reached the same level of a month ago, the lowest since March 2008. Labor Department report showed that employment growth in February was the best six months since 2006.
“The labor market is gaining momentum,” said an economist at UBS Securities LLC in Stamford,Connecticut Kevin Cummins. He analyzed number of applications would drop to 350,000. “Claims corroborate the pickup in employment we saw in February and suggest the pace of the job growth is likely to continue.”
“This suggests that the recovery is firmly on track,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
It is a hopeful sign for the labor market that three straight months of employment gains above 200,000. the job less new claims is moving an average from last four week. It is considered as better labor market trends.
“Labor market conditions have improved further, the unemployment rate has declined notably in recent months but remains elevated,” Federal Reserve policy makers said this week after their second meeting of the year.