US initial jobless claims rise to 238,000

(Sharecast News) - Americans lined up for unemployment benefits at an accelerated pace last week, according to fresh data from the Department of Labor, reflecting a softening labour market and giving weight to the Federal Reserve's rhetoric that a deteriorating jobs backdrop could warrant lower rates.

Initial jobless claims rose by 8,000 to a seasonally adjusted 238,000 in the week ended 30 August, the highest number since June and firmly above consensus forecasts of a smaller increase to 230,000, while continuing claims, which track those still receiving benefits, fell for a second week, dropping to 1.94m, better than the 1.96m expected.

The four-week moving average, which aims to strip out week-to-week volatility, increased to 231,000, up 2,500 from the previous print, reflecting a gradual uptick in claims over the past month. The insured unemployment rate held steady at 1.3%.







Reporting by Iain Gilbert at Sharecast.com