Jobless Claims Drop Significantly; Correlation With Gasoline Demand?

Reuters is reporting:

The number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level in almost seven years, which could bolster views of an acceleration in job growth after a cold winter dampened hiring.

Initial claims for state unemployment benefits dropped 32,000 to a seasonally adjusted 300,000 for the week ended April 5, the Labor Department said on Thursday. That was the lowest level since May 2007, before the start of the 2007-09 recession.

Economists had forecast first-time applications for jobless benefits falling to 320,000 for the week ended April 5.

As more folks return to work, more gasoline is bought, correlating to data points noted yesterday. 

Even the four-week average dropped significantly:

The four-week moving average for new claims, considered a better measure of underlying labor market conditions as it irons out week-to-week volatility, fell to 316,250 in the week ended April 5, down 4,750 from the previous week.