Applications for US unemployment benefits ticked up for the first time in three weeks, consistent with a gradual slowdown in hiring.
Initial claims increased by 2,000 to 230,000 in the week ended Sept. 7, according to Labor Department data released Thursday. The median forecast in a Bloomberg survey of economists called for 226,000 applications.
Continuing claims, a proxy for the number of people receiving benefits, also rose to 1.85 million in the week ended Aug. 31.
The claims data are prone to fluctuations around holidays, and the latest period included Labor Day. The four-week moving average, a metric that helps smooth out volatility in the data, edged up to 230,750 — the first increase in five weeks.
Despite the latest increase, the level of claims has remained subdued for several weeks. Economists have been on the lookout for any sign of downturn in the labor market, but so far there’s been no such warning in the weekly applications for benefits.
“Initial claims do not appear to be trending higher, a key indicator that the labor market is moderating but not falling apart,” Stephen Stanley, chief US economist at Santander US Capital Markets LLC, said in a note Thursday.
Federal Reserve officials have made it clear that further deterioration in the job market would a major concern as they look toward lowering interest rates.
With labor demand moderating and an unexpected pickup in a key gauge of underlying inflation in August, the central bank is widely expected to start its policy easing with a small-sized cut of 25 basis points at their meeting next week.
Initial claims, before adjustment for seasonal factors, declined by 12,968 to 177,663. New York saw the biggest decline, followed by Ohio and Georgia.
A separate report out Thursday showed US producer prices rose in August by slightly more than forecast on a rebound in the cost of services.
Source: Staffing Industry Analysts
