New applications for unemployment benefits in the United States increased more than expected last week, but the number of Americans on jobless rolls fell to its lowest level since 1973, pointing to tightening labour market conditions in the world's strongest economy.
Figures released Thursday by the U.S. Labor Department showed initial claims for state unemployment benefits rose 24,000 to a seasonally adjusted 242,000 for the week ended March 31. Data for the prior week were revised to show 3,000 more claims received than previously reported.
Economists had forecast claims rising to 225,000 in the latest week. Last week's increase likely reflected difficulties adjusting the data around moving holidays like Easter and school spring breaks.
The labour market in the U.S. is considered to be near or at full employment. The jobless rate is at a 17-year low of 4.1%, not too far from the Federal Reserve's forecast of 3.8% by the end of this year.
The four-week moving average of initial claims, viewed as a better measure of labour market trends as it irons out week-to-week volatility, rose 3,000 to 228,250 last week.
Weekly employment activity is to be revealed Friday on both sides of the border, and according to a survey of economists, U.S. non-farm payrolls probably increased by 193,000 jobs in March. The unemployment rate stateside is forecast falling one-10th of a percentage point to 4%.
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