The number of Americans filing for unemployment benefits rose less than expected last week, pointing to sustained labour market strength that could push the U.S. Federal Reserve closer to raising interest rates.
Figures released Thursday by the U.S. Labor Department revealed initial claims for state unemployment benefits increased 2,000 to a seasonally-adjusted 263,000 for the week ended Aug. 27. Claims for the prior week were unrevised.
Economists had forecast first-time applications for jobless benefits rising to 265,000 in the latest week.
Still, it was the 78th consecutive week that claims remained below the 300,000 threshold, implying a robust labour market, and the longest stretch since 1970, when the labour market was much smaller.
With the labour market nearing full employment, there probably is limited scope for further declines in claims.
A department analyst said there were no special factors influencing last week’s claims data and that no states had been estimated.
The four-week moving average of claims, which smoothes out volatility, fell 1,000 to 263,000 last week. The claims data has no bearing on August’s employment report, which is scheduled for release on Friday, as it falls outside the survey period.
According to a survey of economists, non-farm payrolls stateside likely increased by 180,000 jobs in August after rising by 255,000 in July. The unemployment rate is seen falling one-tenth of a percentage point to 4.8%.
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