The number of new applications for USA jobless benefits rose modestly last week and a gauge of the trend in claims fell, pointing to ongoing tightening in the labour market that could push the Federal Reserve to raise interest rates. The four-week average, a less volatile figure, declined to 270,750.
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Employers are retaining staff amid solid domestic demand, one reason why claims have been hovering near historically low levels even as overseas markets languish.
The Labor Department’s next broad snapshot of the job market is due out Friday. Economists polled by Reuters had forecast claims rising to 270,000 last week.
Thursday’s report showed the number of continuing unemployment benefits, claims drawn by workers for more than a week, fell by 53,000 to 2,191,000 in the week ended September 19.
Also encouraging was the fact that the total number of unemployed people receiving benefits in September hit the lowest level since November of 2000.
The Labor Department said that no special factors influenced Thursday’s release. Many layoffs may also reflect company- or industry-specific causes, such as cost-cutting or business restructuring, rather than underlying labor market trends.
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The level of new claims sank below 300,000 in early March and has remained there for 30 straight weeks, a feat last accomplished in 1973, when the nation’s working population was 40% smaller. In addition, steady growth in payrolls and more job openings are helping to sustain household spending, the biggest part of the economy. They expect the unemployment rate held steady.
