Those filing for jobless claims south of the border fell more than expected last week, confirming views of labour market strength that could encourage the U.S. Federal Reserve to raise interest rates soon.
Figures released Thursday by the U.S. Labor Department showed initial claims for state unemployment benefits dropped 4,000 to a seasonally-adjusted 262,000 for the week ended Aug. 13. Claims for the prior week were unrevised.
Economists had forecast initial claims slipping to 265,000 in the latest week.
Experts warily point out that claims have now been below 300,000, a threshold associated with a strong labour market, for 76 straight weeks. That is the longest such stretch since 1973, when the labour market was much smaller.
The labour market is now viewed as either at or near full employment, suggesting limited scope for more declines in claims. Labour market buoyancy, marked by robust hiring in the last two months, could prompt the Fed to raise interest rates despite low inflation and sluggish economic growth in the first half of 2016.
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