US jobless aid applications fall to 14-year low

WASHINGTON (AP) — The number of people seeking U.S. unemployment aid dropped to the lowest level in 14 years last week, the latest sign of a strengthening labor market that could help blunt worries about the impact of weak global growth.

The Labor Department said today that weekly applications for unemployment aid fell 23,000 to a seasonally adjusted 264,000, the lowest level since April 2000. Given that the U.S. population has grown considerably since then, the proportion of the U.S. workforce applying for benefits is even smaller. Applications are a proxy for layoffs.

Analysts cheered the unexpectedly strong data. Ian Shepherdson, chief economist at Pantheon Macroeconomics, described the report as "spectacular" and "astonishing."

"Whether claims can be sustained at such a low level — an all-time low, as a share of payroll employment - is debatable... but this is a clear signal of real strength in the labor market," he said in a note to clients.

The figures come as concerns about slowing global economic growth have roiled financial markets for the past week. A drop in U.S. retail sales, reported Wednesday, intensified the volatility.