US jobless claims saw the largest drop since early February last week, falling 16,000 to a seasonally adjusted 278,000, in a sign layoffs are leveling off after hitting a 15-month high.
That puts unemployment claims at historically low levels, marking the 63rd straight week with claims below 300,000—the longest streak since 1973, the Wall Street Journal reports.
The low jobless claims are another piece in the puzzle for June’s potential Fed rate hike, which the Fed made clear in its April meeting is still very much on the table, should the economy post a strong showing.
April’s jobs numbers from the Bureau of Labor Statistics tell a different story, however, as the economy added just 160,000 jobs over the month, below economists predictions—leaving observers mixed on what to expect from the Fed come June. [WSJ]
