Jobless Claims Edge Up, But Labor Market Still Solid

Reuters
Updated
Unemployment Benefits
APA job seeker fills out an application during a National Career Fairs job fair in Chicago.

By Lucia Mutikani

The number of Americans filing new applications for unemployment benefits rose less than expected last week, suggesting labor market conditions are continuing to tighten.

Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 270,000 for the week ended Aug. 1, the Labor Department said on Thursday. It was the 22nd consecutive week that claims held below the 300,000 threshold, which is associated with a strengthening labor market.

"The unemployment claims are consistent with continued solid job creation and a reduction in labor market slack over time," said John Ryding, chief economist at RDQ Economics in New York.Economists had expected claims to rise to 273,000 last week. The data has no bearing on Friday's employment report for July. According to a Reuters survey of economists, nonfarm payrolls likely increased by 223,000 last month, matching June's gain.

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