US 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 10,000 from the previous week’s unrevised level to 249,000. Economists had been expecting a drop to 235,000.
Meanwhile, the four-week moving average came in at 237,750, up 6,500 from the previous week's unrevised level. 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.
The Labor Department said claims taking procedures continue to be severely disrupted in the Virgin Islands. The ability to take claims has improved in Puerto Rico and they are now processing backlogged claims
Pantheon Macroeconomics said the numbers were likely distorted by Veterans Day and that the market should expect a drop next week.
“Sudden spikes or drops in claims in holiday weeks have to be viewed with scepticism, so these data, which cover the week of Veterans Day, likely are not reliable. The trend is below 240K, and claims should drop to that level this week. After that, seasonal adjustment problems caused by Thanksgiving, Christmas and New Year all will distort the numbers. When the underlying trend re-emerges in January, we expect to see claims remaining below 240K, consistent with the array of very strong hiring indicators.”