US Jobless Claims Drop to Three-Month Low

The U.S labor market continued its improvement last week, after data showed the number of people filing for jobless claims dropped to three-months low.

Jobless claims fell 1,000 to 253,000 last week from 254,000 recorded in the previous week, the Labor Department report showed on Thursday.

Economists had earlier forecast of 265,000.

The report showed employers continue to retain staff as labor market improves and shortage of skilled workers widens. Low levels of firings also confirm the strong outlook for the job market and expected to boost consumer spending, the powerhouse of the economy.

“Demand for labor is high,” said Jacob Oubina, a senior U.S. economist at RBC Capital Markets LLC in New York. “We’re not likely to see a material increase in the trend for layoffs.”

This is the 72 consecutive weeks, jobless claims have been below the 300,000 level that economists equate with an improving job market. That’s the longest stretch since 1973.