US initial jobless claims rise more than expected

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

US initial jobless claims were up 6,000 from the previous week's level, which was revised down by 1,000 to 238,000. Analysts had expected a smaller increase to 241,000.

Meanwhile, the four-week moving average came in at 241,000, down 4,000 from the previous week's average, which was revised down to 245,000 from 245,250.

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 evidence pointing to a real further decline in the trend in jobless claims over the past couple of months continues to mount. It is not yet definitive, but the idea that layoffs have fallen further is consistent with the rebound since last fall in almost all the indicators of hiring we follow.

"The combination of stronger hiring and falling layoffs suggests payroll growth can be sustained above 200K over the next few months, at least, marking a clear improvement from Q4 last year, when payrolls rose by an average of just 148K. If we're right, the unemployment rate will fall more quickly, which will push up the Fed's inflation forecasts."