Initial applications for U.S. unemployment benefits fell to the lowest in a month in the seven days to February 17th, underscoring continued strength in the labor market despite a growing number of high-profile job cuts at large companies. The Labor Department said new claims slid 12,000 to 201,000, well below the 216,000 expected by economists polled by the Wall Street Journal. New jobless claims fell in 45 of the 53 states and territories that report these figures to the federal government. The four-week moving average, which helps smooth short-term swings, decreased to 215,250, while total claims, reported with a one-week lag, fell 27,000 to 1.862m. “Job layoffs remain minimal so wage pressures from a tight labor market will continue to push off the day when Fed officials can safely lower interest rates without reigniting inflation,” said Christopher Rupkey, chief economist at FWDBONDS. “The key economic indicator of whether the economy is slowing down has been and always will be job losses.”
