Initial claims for U.S. unemployment benefits rose to 206,000 last week, up 2,000 from the previous week, the Labor Department said on the 3rd. The figure came in slightly above the 205,000 median estimate of economists surveyed by Bloomberg. Continuing claims, filed by those seeking benefits for two weeks or longer, rose 8,000 to 177,900 in the week of Aug. 16-22. The initial claims figure covered the week of Aug. 23-29.
Initial claims fell to the 180,000 range in mid-July, the lowest level since 1969. Claims have edged higher since then but remain low. That suggests layoffs are staying subdued even as companies slow new hiring.
Investors are now focused on the August employment report due the next day, on the 4th, including the change in nonfarm payrolls and the unemployment rate. Nonfarm payrolls fell by 23,000 in July, delivering what analysts described as a jobs shock. Another weaker-than-expected reading for August could become a major variable for the Federal Reserve's interest rate decision in September. Economists surveyed by Bloomberg expect nonfarm payrolls to have increased by 55,000 in August, with the unemployment rate at 4.1%.
