U.S. initial jobless claims fall to near 4-decade low, strengthen case for Dec Fed rate hike

Initial jobless claims in the United States fell to near 4-decade low during the week ended October 22, as employers remain unwilling to part with workers. Also, the data strengthened the case for a December interest rate hike by the Federal Reserve.

Jobless claims declined by 3,000 to 258,000 in the week ended Oct. 22, data released by the U.S. Labor Department showed Thursday in Washington. The median forecast in a Bloomberg survey called for 256,000. Continuing claims dropped to the lowest level since June 2000.

The four-week average of claims, a less-volatile measure than the weekly figure, increased to 253,000 from 252,000 in the prior week.

The number of people continuing to receive jobless benefits dropped by 15,000 to 2.04 million in the week ended Oct. 15. The unemployment rate among people eligible for benefits held at 1.5 percent. These data are reported with a one-week lag.