US initial jobless claims rise more than forecast

The number of people in the US who applied for unemployment benefits last week rose 14,000 to 266,000, the Labor Department revealed on Thursday.

Economists had expected initial jobless claims to rise to 262,000 in the week the 23 July, compared to an upwardly revised 252,000 the previous week.

Continuing jobless claims – which include people already receiving unemployment checks - increased by 7,000 to 2.14m in the week ended 16 July, slightly below forecasts of 2.13m.

“Overall, the ongoing decline in initial and continuing claims indicates substantial underlying strength in labour markets, at least from the separations side,” said Barclays Research.

“This week’s release marks 73 consecutive weeks of initial claims below 300,000, the longest streak since 1973. The low level of initial claims shows that workers are not losing their jobs in large numbers, while the low level of continuing claims indicates that those workers who do get laid off are likely finding employment and are therefore leaving the unemployment insurance rolls. “