Job seekers wait in line to enter the San Jose Career Fair in California on November 10. Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 269,000 for the week ended November 28, the Labor Department says.
Reuters
Washington
The number of Americans filing for unemployment benefits rose last week, but remained at levels consistent with a strengthening labour market.
Other data showed planned job cuts in November were the lowest in 14 months, with the purge in the oil sector appearing to be slowing.
Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 269,000 for the week ended November 28, the Labor Department said on Thursday.
It was the 39th straight week that claims held below 300,000, which is normally associated with a healthy Labor market. Claims are near levels last seen in 1973 and there is little room for further declines as the Labour market normalises.
The claims data covered the Thanksgiving Day holiday, which can cause volatility in the numbers. A Labor Department analyst said there were no special factors influencing the data and only claims for Louisiana had been estimated.
The four-week moving average of claims, considered a better measure of Labour market trends as it strips out week-to-week volatility, fell 1,750 to 269,250 last week.
In a separate report, global outplacement consultancy Challenger, Gray & Christmas, Inc said US-based firms announced 30,953 job cuts in November. That was the smallest amount since September 2014 and down 39% from October. There were 1,355 oil-related job cuts, the fewest since June.
US financial markets were little moved by the data as investors focused on the European Central Bank’s unveiling of further stimulus measures to revive lending and inflation in the eurozone.
Last week’s jobless claims have no bearing today’s employment report for November as they fall outside the survey period. According to a Reuters survey of economists, nonfarm payrolls likely increased 200,000 last month after rising 271,000 in October. The unemployment rate is forecast unchanged at a 7-1/2-year low of 5%.
Economists say that would be enough for the Federal Reserve to raise interest rates later this month for the first time in nearly a decade. Fed Chair Janet Yellen suggested on Wednesday that a rate hike was on the table at the December 15-16 meeting.
Yellen could offer more clues on the near-term monetary policy outlook when she was scheduled to speak to lawmakers later yesterday.
The claims report showed the number of people still receiving benefits after an initial week of aid rose 6,000 to 2.16mn in the week ended November 21. The four-week moving average of the so-called continuing claims fell 2,250 to 2.17mn.
After big declines for much of the year, the pace of improvement in continuing claims appears to have slowed in recent weeks. Economists say this suggested limited scope for the unemployment rate to fall further. Page 12
