US jobless claims up, but labour market stronger

Planned job cuts in November lowest in a year as weekly jobless claims rise 9,000

The number of Americans filing for unemployment benefits rose last week, but remained at levels consistent with a strengthening labour market.

Other data yesterday showed planned job cuts in November were the lowest in 14 months, with the purge in the oil sector appearing to be slowing. Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 269,000 for the week ended November 28, the Labour Department said yesterday.

It was the 39th straight week that claims held below 300,000, which is normally associated with a healthy labour market. Claims are near levels last seen in 1973 and there is little room for further declines as the labour market normalises.

The claims data covered the Thanksgiving Day holiday, which can cause volatility in the numbers. A Labour Department analyst said there were no special factors influencing the data and only claims for Louisiana had been estimated.

Better measure

The four-week moving average of claims, considered a better measure of labour market trends as it strips out week-to-week volatility, fell 1,750 to 269,250 last week.

In a separate report, global outplacement consultancy Challenger, Gray & Christmas, Inc. said US-based firms announced 30,953 job cuts in November. That was the smallest amount since September 2014 and down 39 per cent from October.

There were 1,355 oil-related job cuts, the fewest since June.

Last week’s jobless claims have no bearing on Friday’s employment report for November as they fall outside the survey period. According to a Reuters survey of economists, nonfarm payrolls likely increased 200,000 last month after rising 271,000 in October. The unemployment rate is forecast unchanged at a 7-1/2-year low of 5 per cent.