New jobless claims plummet sharply to 268k.

Initial jobless claims fell very sharply in the March 28 week, down 20,000 to 268,000. Next to 267,000 in the January 24 week this year, this is the lowest reading since all the way back in April 2000. The big drop pulls the 4-week average down an unusually steep 14,750 to 285,000 which is the lowest reading since November last year.

Continuing claims, reported with a 1-week lag, are also pointing to improvement. Continuing claims in data for the March 21 week fell a very steep 88,000 to a new recovery low of 2.325 million. The 4-week average is down 20,000 to 2.388 million which is the lowest reading since February. The unemployment rate for insured workers is down 1 tenth to a new recovery low of 1.7 percent.

But there is a caveat in today's report and that is seasonal adjustment tied to Easter which is a difficult holiday period to adjust for given its year-to-year calendar shifts. Still, today's report is a positive for the jobs outlook and may ease concern, ever so slightly, of weak readings in tomorrow's March employment report.