The number of Americans filing applications for unemployment benefits unexpectedly fell last week, pointing to strong stateside labour market conditions despite signs that job growth was slowing.
Figures released Thursday by the U.S. Labor Department revealed initial claims for state unemployment benefits slipped 3,000 to a seasonally-adjusted 223,000 for the week ended March 2. Economists had forecast claims would be unchanged at 225,000 in the latest week.
The four-week moving average of initial claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 3,000 to 226,250 last week, the lowest level in a month.
While other data on Thursday showed an improvement in worker productivity in the fourth quarter, the trend in the United States remained sluggish. Labour costs continued to rise at a moderate pace in the last quarter, suggesting benign inflation pressures that support the Federal Reserve's "patient" stance towards further interest rate increases this year.
The claims data has no bearing on February's employment report, which is scheduled for release on Friday, as it falls outside the survey period. There are indications that employment growth is slowing after last year's robust gains. Part of the moderation in job growth is because of a shortage of workers.
The pace of job growth south of the border, however, remains more than enough to keep pushing the unemployment rate down. According to a survey of economists, non-farm payrolls likely increased by 180,000 jobs in February after surging by 304,000 in January.
The U.S. unemployment rate is forecast to fall one-10th of a percentage point to 3.9% in February.
