The number of US workers seeking jobless benefits rose by an unexpectedly steep 12,000 last week to 321,000, government data showed today, but remained at levels pointing to a healthy labor market.
The latest figures from the Labour Department cover the week ending November 18th and compare with Wall Street forecasts for claims of 310,000. This follows a revised 309,000 the week before, initially reported as 308,000 applications for aid.
The labour market is under close scrutiny after a surprise drop in the unemployment rate to 4.4 per cent in October, from 4.6 per cent, after 92,000 fresh jobs were created that month.
Federal Reserve officials may worry a tight labor market could add to wage pressures as they consider whether to keep interest rates on hold at their next meeting, on December 12th.
November's jobs situation will be reported on December 8th. Slowing US growth in the third quarter has led some economists to predict a deterioration in labor market conditions in the months ahead.
"The weekly initial claims data are a little worse than expected," said Action Economics in a note to clients. "(This) suggest some risk to our 135,000 forecast for nonfarm payrolls. The data could add downside pressure on the dollar and yields amid thin trading," it noted.
The dollar was broadly weaker on foreign exchange markets, with the softness blamed on dealers squaring positions before Thanksgiving on Thursday.
US financial markets also close early on Friday. US Treasuries were mostly steady after the data.