(Reuters) – The number of Americans filing new unemployment claims fell unexpectedly last week, indicating that labor market conditions remain tight.
Initial jobless claims fell by 5,000 in the week ended April 20 to a seasonally adjusted 207,000, the Labor Department said Thursday.
Economists polled by Reuters predicted 215,000 applications last week. Requests have fluctuated in a range of 194,000 to 225,000 this year.
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Companies are stockpiling workers after facing difficulties finding labor during and after the Covid-19 pandemic, and are enjoying higher profits due to strong pricing power.
Low layoffs are keeping wage growth high, supporting consumer spending, which accounts for more than two-thirds of economic activity.
The number of people receiving benefits after an initial week of aid, an indicator of hiring, decreased by 15,000 during the week ending April 13, to 1.781 million, according to the report.
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