US initial jobless claims rise

The number of Americans filing for unemployment benefits rose last week, according to data released on Thursday by the Labor Department.

Initial jobless claims increased by 5,000 from the previous week’s upwardly-revised level, to 217,000. Analysts had been expecting a level of 210,000.

The previous week’s reading was revised up by 2,000.

Meanwhile, the four-week moving average came in at 210,000, up 2,000 from the previous week’s level, which was revised up by 500 to 208,000.

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.

Nancy Vanden Houten, lead US economist at Oxford Economics, said: "Initial jobless claims came in a touch higher than expected in the week ended October 28, but remain at levels consistent with few layoffs. Continued claims, meanwhile stayed on an upward trajectory, rising to the highest level in six months. The upturn in continued claims suggests that, while the labour market may be characterised by few job losses, unemployed individuals are finding it more difficult to find new jobs, which would be consistent with a slower pace of hiring.

"Our current forecast is for no additional rate hikes, and we think that's consistent with the message sent by the Fed at the conclusion of yesterday's meeting. The Fed needs to see more softening of labour market conditions to be persuaded that inflation is on a sustainable path back to 2%. However, officials will give that scenario some time to unfold as they wait for cumulative rate hikes and tighter financial and credit conditions to fully feed through to the economy. The rise in continued claims, if sustained, would be a sign of a further loosening in conditions in the labour market."