US initial jobless claims unexpectedly rise

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

US initial jobless claims were up 14,000 to 257,000 from the previous week's level, which was revised down by 1,000 to 243,000. Economists had been expecting a drop to 241,000.

Meanwhile, the four-week moving average came in at 242,250, down 500 from the previous week's level, which was revised down by 250 to 242,750.

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.

Pantheon Macroeconomics said: "The Labor Department says no special factors affected claims this week, but Louisiana's numbers were estimated and, more importantly, Easter/spring break seasonal adjustments are awkward and unreliable, because the date of the holiday changes from year to year. We think the underlying trend in claims is about 250K, and claims likely will revert to that level over the next couple of weeks.

"The trend in claims likely is no longer falling, but we see no reason to think it is rising, either, and, like all the evidence on the demand side of the labour market, the data are consistent with very strong payroll growth."