The number of Americans filing for unemployment benefits edged up last week, but the trend remained consistent with a tight labour market.
Figures released by the U.S. Labor Department Thursday showed initial claims for state unemployment benefits increased 2,000 to a seasonally-adjusted 244,000 for the week ended June 24.
Economists had forecast first-time applications for jobless claims declining to 240,000 last week.
Jobless claims for the prior week were revised up to 242,000 from 241,000. It was the 121st consecutive week that claims were below 300,000, the threshold associated with a strong labour market.
The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 2,750 to 242,250 last week.
The unemployment rate in May declined to a 16-year low of 4.3%.
Moreover, the department said, Thursday's claims report also showed the number of people still receiving benefits after an initial week of aid increased 6,000 to 1.95 million in the week ended June 17.
The so-called continuing claims have now been below two million for 11 straight weeks, indicating diminishing labour market slack.
