US jobless claims hold near 15-year low

Weekly figure rises by 3,000, well below expectations

The number of Americans filing new claims for unemployment benefits rose marginally last week, staying near a 15-year low in a sign that the labour market continues to strengthen despite moderate economic growth.

Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 265,000 for the week ended May 2, the Labour Department said yesterday.

Claims for the prior week were unrevised at 262,000, which was the lowest reading since April 2000. Claims have been below 300,000 for nine weeks. That threshold is usually associated with a strengthening labour market.

Economists polled by Reuters had forecast claims rising to 280,000 last week. A Labour Department analyst said there was nothing unusual in the state-level data.

The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, fell 4,250 last week to 279,500, the lowest since May 2000.

The dollar rose to session highs against the euro on the data, while prices for US Treasury debt price trimmed gains.

The data has no bearing on today’s employment report for April as it falls outside the survey period.

However, the low trend in claims provides optimism that nonfarm payrolls rebounded in April, despite a report on Wednesday showing that private employers last month hired the fewest workers in more than a year.

According to a Reuters survey of economists, nonfarm payrolls likely increased 224,000 in April after gaining 126,000 in March, when hiring was held back by bad weather.

Expectations for a relatively strong employment report were also bolstered by a separate report showing small businesses increased hiring last month.

The National Federation of Independent Business said businesses added an average of 0.14 workers per firm last month.

Fifty-three per cent of small businesses reported hiring or trying to hire, up 3 points from March.