The number of Americans filing for unemployment benefits for the first time increased more than expected last week, but speculation is that the hike probably does not signal a material shift in labor market conditions as claims for several states, including California, were estimated.
Numbers released Thursday morning by the U.S. Labor Department showed initial claims for state unemployment benefits jumped 13,000 to a seasonally-adjusted 248,000 for the week ended May 27.
Data for the prior week was revised to show 1,000 more applications received than previously reported. Economists had forecast first-time applications for jobless benefits rising to 239,000 in the latest week.
It was the 117th straight week that claims were below 300,000, a threshold associated with a healthy labour market down south.
That is the longest such stretch since 1970, when the labour market was smaller. The U.S. labour market is near full employment, with the jobless rate at a 10-year low of 4.4%.
