US initial jobless claims hit lowest since 1973

US data released today showed first time applicants for unemployment benefits- initial jobless claims – fell by 13K last week to 253K, which is the lowest since 1973.

Markets were expecting a rise to 270K from previous week’s 266K. The average of new claims over the past four weeks, a less volatile measure, declined by 1,500 to 265,000, the Labor Department said.

Meanwhile, continuing claims printed at 2.17 million in the seven days ended April 2, which is also 18K lower compared to the prior week.

The data underscores the strength in the US labor market despite recession in the manufacturing sector and global headwinds.