💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

U.S. jobless claims rise, but firming labor market trend intact

Published 09/11/2014, 08:56 AM
U.S. jobless claims rise, but firming labor market trend intact

By Lucia Mutikani

WASHINGTON (Reuters) - The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but that probably does not signal a material shift in labor market conditions as claims remain near their pre-recession levels.

Initial claims for state unemployment benefits increased 11,000 to a seasonally adjusted 315,000 for the week ended Sept. 6, the highest level since late June, the Labor Department said on Thursday.

Economists polled by Reuters had forecast claims slipping to 300,000 last week.

The period included the Labor Day holiday and claims tend to be volatile around holidays. A Labor Department analyst said there were no special factors influencing the state level data.

The four-week average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, edged up 750 to 304,000, not far from pre-recession levels and consistent with strengthening labor market conditions.

Atlantic City casino closings could bump up claims in the coming weeks.

U.S. Treasury debt prices held their modest gains, while the dollar and U.S. stock index futures were little moved by the data.

Job growth braked sharply in August, with employers adding only 142,000 jobs to their payrolls - snapping six consecutive months of job increases above 200,000.

Economists, however, cautioned against reading too much into the weakness, noting that payroll gains tend to be smaller in August because of difficulties adjusting the data for seasonal fluctuations in hiring.

In addition, other labor market indicators, including manufacturing and services sectors surveys have pointed to relatively strong job gains.

The jobless claims report showed the number of people still receiving benefits after an initial week of aid rose 9,000 to 2.49 million in the week ended Aug. 30, also not straying too far from pre-recession levels.

© Reuters. A "Now Hiring" sign hangs on the door to the Urban Outfitters store at Quincy Market in Boston

The unemployment rate for people receiving unemployment benefits held at 1.9 percent for the ninth straight week.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.