US weekly jobless claims edge down as layoffs remain low

[WASHINGTON] The number of Americans filing claims for unemployment benefits fell last week, suggesting that layoffs remained low and continued to anchor the labour market.

Initial claims for state unemployment benefits dipped 1,000 to a seasonally adjusted 206,000 for the week ended September 5, the Labor Department said on Thursday (Sep 10). Economists polled by Reuters had forecast 205,000 claims for the latest week.

Claims have been hemmed into a narrow 189,000-212,000 range since mid-July, consistent with a labour market that is regaining its footing after hitting a speed bump from the end of spring and through much of summer. The government reported last week that nonfarm payrolls jumped 162,000 jobs in August, the largest gain in five months, after rising 21,000 in July. The unemployment rate was unchanged at 4.1%.

Despite the pickup in payroll gains, long-term unemployment remains a problem, with the median duration of joblessness near 4½ year highs in August.

The claims report showed the number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, slipped 1,000 to a seasonally adjusted 1.774 million during the week ended August 29. REUTERS