US initial jobless claims rise slightly less than expected

The number of first time unemployment benefits claimants in the US surged to a two-month high last week, figures released on Thursday showed.

According to the Department of Labor, new claims rose by 9,000 to 269,000 in the week to 28 November, compared with analysts' expectations for a 270,000 reading.

Meanwhile, the average of new claims over the last four weeks rose by 1,750 to a seasonally adjusted 269,250, the report added.

The four-week average is considered more reliable as it smooths out sharp fluctuations in the more volatile weekly figures and, as such, is seen as a more accurate indicator of the health of the labour market.

The Department of Labor added 2.16m people were already collecting weekly unemployment benefits, known as continuing claims, in the week to 21 November, a 6,000 increase from the prior week.