Initial claims for state unemployment benefits dropped 20,000 to a seasonally adjusted 368,000, the lowest since May 2008, the Labor Department said. Economists polled by Reuters had forecast claims rising to 398,000. The prior weeks figure was revised down to 388,000 from the previously reported 391,000.
The claims data falls outside the survey period for the governments closely watched employment report for February due for release on Friday. Nonfarm payrolls probably increased 185,000 after snowstorms depressed growth to a paltry 36,000 jobs in January, according to a Reuters survey.
Claims have now held below the 400,000 threshold for a second straight week. Claims below that level are widely viewed as signalling strong jobs growth and economists believe it is only a matter of time before this is reflected in the payrolls numbers.
Read more here: Jobless Claims at 2-1/2 Year Low; Productivity Rises