US initial jobless claims rise more than expected

The number of first time unemployment benefits claimants in the US rose to a five-month high last week.

According to the Department of Labor, new claims rose by 13,000 to 282,000 in the week to 5 December, compared with analysts' expectations for a 269,000 reading.

Meanwhile, the average of new claims over the last four weeks was up 1,500 to a seasonally-adjusted 270,750.

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.

“We expected a rebound in claims this week because the seasonals looked quite tough, so we are unperturbed at the increase,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“Our reading of the seasonals points to lower claims for the next two weeks - with a decent chance of a new cycle low - before the holidays throw the numbers temporarily into chaos. The underlying trend remains just below 270K, a record low as a proportion of payroll employment, and consistent with continued rapid increases in payrolls.”