New applications for U.S. unemployment benefits unexpectedly held near more than a 48-year low last week, pointing to a further tightening of labour market conditions south of the border.
Figures released Thursday by the U.S. Labor Department showed initial claims for state unemployment benefits were unchanged at a seasonally-adjusted 211,000 for the week ended May 5. Claims dropped to 209,000 during the week ended April 21, which was the lowest level since December 1969.
Economists had forecast claims rising to 218,000 in the latest week.
The American labour market is considered to be near or at full employment, leading to a slowdown in job growth as employers struggle to find skilled workers. A government report on Tuesday showed job openings rising to a record 6.6 million in March.
Hiring moderated in March and April after surging in February. The unemployment rate dropped to near a 17½-year low of 3.9% in April from 4.1% in March. The jobless rate is within striking distance of the Federal Reserve's forecast of 3.8% by the end of this year.
