U.S. unemployment claims drop to 2-1/2 month low of 214,000 as hiring revs up

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U.S. unemployment claims drop to 2-1/2 month low of 214,000 as hiring revs up
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U.S. first-time and continuing jobless claims decline in latest week

The numbers: New filings for unemployment benefits fell to a two-and-a-half month low of 214,000 in mid-March, showing that demand for labor is still extremely high as the economy recovers from the pandemic.

Economists polled by The Wall Street Journal had forecast initial jobless claims to total a seasonally adjusted 220,000 in the seven days ended March 12. So long as demand for labor is strong, the U.S. economy is likely to keep growing at a steady pace. The biggest risks in the short run are high inflation —- exacerbated by the war in Ukraine — and the potential spread of another strain of the coronavirus.

These so-called continuing claims, which are reported with a one-week lag, have fallen below pre-crisis levels and are extremely low.

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