Fewer Americans claimed jobless benefits last week

Fewer Americans than expected claimed the dole last week, indicating that the US job market may be losing some of its slack.

Initial claims for state jobless benefits dropped 10,000 to a seasonally adjusted 278,000 in the week to 1 November, the US Labor Department said.

Economists had expected benefit claims to fall to 285,000. Weekly claims have now been less than 300,000 for about two months.

On a four-week moving average, claims dipped 2,250 to 279,000, the lowest reading since April 2000.

Barclays said in a note: "The continued downward trend for initial and continuing claims is consistent with solid labour market improvement.

"However, given that this week’s report corresponds to the period after the survey week for the October payrolls report, our forecast for non-farm payroll gains of 225,000 in tomorrow’s report remains unchanged."