US initial jobless claims rise more than expected
The number of Americans filing for unemployment benefits rose more than expected last week, according to figures from the Labor Department.
US initial jobless claims increased by 8,000 from the previous week's revised level to 225,000, versus expectations for a level of 220,000. The previous week's figure was revised up by 1,000.
Meanwhile, the four-week moving average came in at 229,000, down 7,000 from the previous week's average, which was revised up by 250.
The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.
Continuing claims - i.e. the number of people already collecting unemployment benefits - rose to 1.805m from a revised 1.726m, versus expectations for a level of 1.733m. The previous week's level was revised up by 1,000.
Pantheon Macroeconomics said: "The turn-of-the-year seasonal noise and the impact of the government shutdown have now faded from the claims numbers, and the trend has re-emerged at a slightly higher level than last fall. Economic growth has slowed a bit from last year’s peak and is unlikely to rebound in the near-term, so claims could easily nudge a bit higher.
"But they will remain at a very low level, not least because firms don’t want to let people go unless they have no choice; the labour market is so tight that replacing staff is very difficult. We expect claims to hover in the 220s for the next couple of months, at least."