Figures released this morning by Washington show the number of Americans filing for unemployment benefits unexpectedly rose last week. But they also say the trend in jobless claims continued to point to tightening labour market conditions.
Initial claims for state unemployment benefits increased 3,000 to a seasonally-adjusted 231,000 for the week ended June 30, the U.S. Labor Department said on Thursday. Claims data for the prior week was revised to show 1,000 more applications received than previously reported.
Economists had forecast claims falling to 225,000 in the latest week. Claims could become volatile in the coming weeks as automobile manufacturers close assembly lines for annual retooling.
More auto workers are likely to be affected by the temporary plant closures than in the past, which could throw off the model that the government uses to smooth the data for seasonal fluctuations. General Motors (NYSE: GM) has announced it will close its Flint assembly plant for the whole of July.
The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, rose 2,250 to 224,500 last week.
The labor market is viewed as being near or at full employment, with the jobless rate at an 18-year low of 3.8%. The unemployment rate has dropped by three-10ths of a percentage point this year and is near the Federal Reserve's forecast of 3.6% by the end of this year.
