Applications for US jobless benefits rose slightly last week

By Paul Wiseman, The Associated Press

WASHINGTON – More Americans applied for unemployment benefits last week, but jobless claims remained at levels consistent with a healthy labour market.

THE NUMBERS: The Labor Department said Thursday that claims rose by 1,000 last week to a seasonally adjusted 260,000. Applications have come in below 300,000 for 80 straight weeks, longest streak since 1970. The less volatile four-week average slipped last week by 500 to 260,750.

The number of Americans collecting unemployment checks is 2.14 million, down nearly 5 per cent from a year ago.

THE TAKEAWAY: Applications for unemployment benefits are a proxy for measuring layoffs. The low level of claims suggests that most Americans enjoy job security.

KEY DRIVERS: The unemployment rate is at a healthy 4.9 per cent. Employers have added more than 200,000 jobs a month over the past year — though hiring slowed to 151,000 in August.

Another Labor Department report last week showed that job openings rose 4 per cent in July but hiring only increased 1 per cent. The disconnect suggests that employers are struggling to find qualified workers.

The job market has been solid even though the American economy has sputtered since late last year. The economy expanded at an unimpressive 1.1 per cent annual pace from April through June after growing just 0.8 per cent in the first quarter and 0.9 per cent in the fourth quarter of 2015.

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