US initial jobless claims rise less than expected

The number of Americans filing for unemployment benefits rose less than expected last week, according to data from the Labor Department

US initial jobless claims were up 10,000 from the previous week’s revised level to 233,000, compared with expectations of 235,000. Meanwhile, the previous week’s level was revised up by 1,000.

The four-week moving average came in at 239,500, down 9,000 from the previous week's level, which was revised up by 250 to 248,500. The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures, giving a more accurate picture of the health of the labour market.

The Commerce Department said claims taking procedures continue to be severely disrupted in Puerto Rico and the Virgin Islands as a result of power outages and infrastructure damage caused by Hurricanes Irma and Maria.

Pantheon Macroeconomics said: “Last week's drop to a 44-year low never looked sustainable, but the rebound this week is a bit smaller than we expected. We still think it likely that claims will return to the upper 230s over the next few weeks - that was the trend before the hurricanes - but we can't rule out the idea that the trend has nudged down to a new low.

“That would be consistent with the remarkable strength of survey-based measures of hiring in recent months, and the difficulty employers report in finding qualified staff. In other words, we see nothing in any of the labour market numbers to suggest that the downward trend in the unemployment rate will level off anytime soon.”