US jobless claims fall to lowest since mid-July

The number of people applying for US unemployment benefits dipped last week to the lowest level since mid-July as lay-offs remain low and most American workers enjoy job security.

The Labor Department said on Thursday that initial jobless claims ticked down to 197,000 from a revised 198,000 the week before. The four-week average of claims, which smooths out week-to-week volatility, dropped by 2,500 to 200,000.

Claims for jobless benefits are a proxy for lay-offs, and economists watch them because they can be a sign of where the job market is headed. So far this year, claims have mostly stayed below 220,000 – historically low.

The American job market has remained sturdy despite higher energy prices that have squeezed businesses and consumers since the fighting with Iran began February 28.