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US jobless claims rise; trend shows labour market still strong

Thursday, September 3, 2015 - 20:49
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The number of Americans filing new applications for unemployment benefits rose more than expected last week, but the underlying trend remained consistent with a strengthening labor market.

[WASHINGTON] The number of Americans filing new applications for unemployment benefits rose more than expected last week, but the underlying trend remained consistent with a strengthening labor market.

Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 282,000 for the week ended Aug. 29, the Labor Department said on Thursday.

Claims for the prior week were revised to show 1,000 fewer applications received than previously reported. Economists had forecast claims rising to 275,000 last week.

A Labor Department analyst said there were no special factors influencing the data and no states had been estimated.

The claims data has no bearing on Friday's closely watched employment report for August as it fell outside the survey period. According to a Reuters survey of economists, nonfarm payrolls likely increased by 220,000 last month after rising 215,000 in July.

But job gains could come in below expectations as the first reading of August payrolls has tended to be weaker in the last several years before being revised higher.

The August employment report will be released less than two weeks before the Federal Reserve's Sept 16-17 policy-setting meeting. There is speculation the US central bank could raise interest rates at that meeting.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 3,250 to 275,500 last week.

It was the 23rd straight week that the four-week average remained below the 300,000 threshold, which is usually associated with a strengthening labor market.

Thursday's claims report showed the number of people still receiving benefits after an initial week of aid fell 9,000 to 2.26 million in the week ended Aug 22.

REUTERS