Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 265,000 in the latest week. The job market has experienced robust hiring in the last two months and slack has also significantly diminished.
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United States weekly unemployment claims fell again in the third week of August, coming in below analyst expectations, according to the Labor Department. The figure has been below 300,000 for 77 consecutive weeks, the longest such stretch since 1970, when the US population was far smaller.
With the labor market being viewed as either at or near full employment, claims will likely hover around current levels for a while.
USA initial jobless claims declined by 1,000 from the previous week’s unrevised level to 261,000, beating expectations for a jump to 265,000. The less volatile four-week average is seen as a more accurate measure of labor-market trends. The unemployment rate held steady at 4.9% last month, within the range that Federal Reserve officials believe will be the economy’s average over the long run.
The job market is a key factor in U.S. monetary policy makers’ decisions on interest rates, which remain at historic lows.
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Continuing jobless claims, meanwhile, declined by 30,000 to 2.15 million in the week ended August 13 the government said. Continuing claims are reported with a one-week lag.
