US initial jobless claims rise more than expected

The number of Americans filing for unemployment benefits rose more than expected last week, according to the Labor Department.

US initial jobless claims rose by 17,000 to 274,000, versus expectations for a rise to 260,000.

Nevertheless, this marked 61 consecutive weeks of initial claims below 300,000 - the longest streak since 1973.

The four-week moving average of new claims was 258,000, up 2,000 from the previous week’s unrevised average of 256,000.

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.

Pantheon Macroeconomics said: “The rebound in claims over the past couple of weeks strongly supports our view that the very low numbers in previous weeks were the result of seasonal adjustment problems caused by the very early Easter. Claims have now reverted to the pre-Easter trend, and we see no reason now to expect much change over the next few weeks.

“The trend in claims is still extremely low, but it was never likely that they'd be sustained below 260K. At their current level, claims are comfortably consistent with payroll growth of 200K-plus.”