2018.04.1222:49:00UTC+00U.S. Weekly Jobless Claims Drop; Import Prices Remain Flat

New applications for U.S. unemployment benefits dropped last week, pointing to sustained labor market strength despite a significant slowdown in job growth in March.

Initial jobless claims, a proxy for layoffs across the United States, fell by 9,000 to a seasonally adjusted 233,000 in the week ended April 7, according to the Labor Department. This means claims have now held below 300,000 for 162 straight weeks, marking its longest streak for weekly records since 1967.

The four-week moving average of initial claims, viewed as a better measure of labor market trends as it irons out week-to-week volatility, increased 1,750 to 230,000 last week.

The economy created 103,000 jobs in March, the fewest in six months. Economists largely brushed off the slowdown as payback after hefty job gains in February. They also blamed cooler temperatures for the moderation in hiring.

The labor market is considered to be near or at full employment. The jobless rate is at a 17-year low of 4.1 percent, not too far from the Fed's forecast of 3.8 percent by the end of 2018.

Minutes of the U.S. central bank's March 20-21 policy meeting published on Wednesday offered an upbeat assessment of the jobs market, noting that "most participants described labor market conditions as strong."

Separate data also showed import prices were flat in March amid a sharp decline in the cost of petroleum products, emphasizing imported inflation pressures are steadily rising. This together with a tightening labor market strengthens expectations inflation will gain steam this year.