Total initial claims for unemployment insurance for the week ended April 30 were 274,000, up 17,000 from the previous week’s unrevised level.
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U.S. initial jobless claims rose by 17,000 to 274,000, versus expectations for a rise to 260,000.
More Americans than expected filed for unemployment benefits for the first time last week, although the underlying trend still points to declining jobless claims and a strengthening labor market.
The number of Americans collecting unemployment benefits fell in late April to a almost 16-year bottom, largely reflecting the low rate of layoffs taking place across the economy.
Last week was also the 61st consecutive week that initial claims were below 300,000, extending the longest streak since 1973 amid steady job creation. USA stock futures were trading higher.
KEY DRIVERS: The report on unemployment benefits indicates that hiring should continue to be healthy in the jobs report being released Friday by the government. Global outplacement firm Challenger, Gray & Christmas said US -based companies cut 65,141 jobs last month, up 35% from March.
Claims were generally low in April compared to March. While job growth remains strong, the number of planned layoffs from USA employers is running at the highest pace since 2009.
“It is not unusual to see heavy job cuts in a strong economy”.
Though the ADP National Employment Report showed a slowdown in services industry hiring last month, an Institute for Supply Management survey showed employment in the services sector increased in April for a second straight month. They were also layoffs in the information technology and retail sectors. The data was worse than what analyst were looking for, according to a Thomson Reuters survey where the average analyst estimate was 260k. A week earlier the monthly average had fallen to a 43-year bottom.
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The number of people continuing to receive jobless benefits fell by 8 000 to 2.12 million in the week ended April 23, the lowest level since November 2000.
