Figures released Thursday showed new applications for U.S. unemployment benefits fell more than expected last week, but claims for several states, including California and Virginia, were estimated.
The U.S. Labor Department reported initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 221,000 for the week ended May 26. Claims data for the prior week was unrevised.
Economists polled by Reuters had forecast claims falling to 228,000 in the latest week. The department said claims for California, Kansas, Virginia, Maine, Hawaii, Puerto Rico and the Virgin Islands were estimated last week because of Monday's Memorial Day holiday.
The labour market is viewed as being close to or at full employment. The jobless rate is near a 17-1/2-year low of 3.9%, within striking distance of 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 2,500 to 222,250 last week.
The claims report has no bearing on May's employment report, which is scheduled for release on Friday. According to economists, non-farm payrolls probably increased by 188,000 jobs after rising by 164,000 jobs in April.
