The number of Americans filing for unemployment benefits fell last week, pointing to sustained labor market strength in early August that could help spur faster economy growth.
Figures released Thursday by the U.S. Labor Department show initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 266,000 for the week ended Aug. 6. Claims for the prior week were revised to show 2,000 fewer applications received than previously reported.
Economists had forecast initial claims declining to 265,000 in the latest week. A department analyst said there were no special factors influencing last week's claims data and no states had been estimated.
Claims have now been below 300,000, a threshold associated with a strong labour market, for 75 consecutive weeks, the longest streak since 1973.
With the labour market perceived to be either at or approaching full employment, there is probably little room for further declines in claims. A report on Wednesday showed layoffs fell to a near two-year low in June.
The robust labour market is boosting consumer spending south of the border and putting a floor under the economy after an inventory correction and lower oil prices restricted growth in gross domestic product to an average 1% annualized rate in the last three quarters.
The American economy added a total of 547,000 jobs in June and July. The low number of claims suggests job growth momentum was retained in early August.
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