Drop in US jobless claims reflect strength in labor market

The number of people applying for unemployment benefits in the US dropped close to the lowest level in around 50 years. The Labor Department said on Thursday that initial jobless claims decreased by 1,000 to 216,000 for the week ended December 22.

This signals strength in the labor market and fewer number of layoffs during the holiday period. The number of claims were high during the period from mid-September to mid-December but came down in three of the last four weeks. Initial claims dropped to 202,000 in the week ended September 15, which is the lowest level in 49 years.