The number of Americans filing for unemployment benefits reportedly rose less than expected last week, suggesting a further tightening in labour market conditions.
Figures released Thursday by the U.S. Labor Department said initial claims for state unemployment benefits increased 2,000 to a seasonally-adjusted 234,000 for the week ended Aug. 19. Data for the prior week was unrevised.
Claims have now been below 300,000, a threshold associated with a robust labour market, for 129 consecutive weeks. That is the longest such stretch since 1970, when the labour market was smaller.
Economists had forecast claims rising to 238,000 last week. The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 2,750 to 237,750 last week, the lowest level since May.
Low numbers of layoffs have helped reduce the unemployment rate to a 16-year low of 4.3%. The labor market tightness could allow the Federal Reserve to outline a plan to begin unwinding its $4.2-trillion portfolio of Treasury bonds and mortgage-backed securities at its Sept. 19-20 policy meeting.
