Economists surveyed by The Wall Street Journal expected 265,000 new claims.
Advertisement
The report said initial jobless claims dipped to 259,000, a decrease of 4,000 from the previous week’s unrevised level of 263,000. The prior week’s reading was unrevised at 263 000. The figure has been below 300,000 for 79 consecutive weeks, the longest such stretch since 1970, when the USA population was far smaller.
The claims figures provide additional perspective on the labor market following the monthly jobs data released last week that showed hiring cooled in August. Services sector activity in August was the slowest in 6-1/2 years. Filings for benefits near four-decade lows should signal a boost in wages, which would encourage Federal Reserve officials looking to raise the benchmark interest rate before the end of 2016. Further, rates are expected to stay steady or go lower, with no word yet regarding whether or not the ECB’s QE program – buying back bonds much the way the USA did for years – will be expanded.
A Labor Department analyst said there were no special factors influencing last week’s claims data.
The estimates are based on historical trends and normally do not deviate much from the actual data, the analyst said.
With the unemployment rate holding below 5 percent and job openings reaching a record high in July, managers are focused on retaining and attracting employees.
WASHINGTON-The number of Americans applying for first-time unemployment benefits fell slightly last week to remain near historically low levels, suggesting firms are reluctant to lay off workers.
With the labor market near full employment and the economy’s recovery from the 2007-09 recession showing signs of aging, the slowdown in job growth is normal.
Advertisement
Continuing jobless claims, meanwhile, dropped 7,000 to 2.14 million in the week ended August 27, the government said.
