Americans filing for unemployment benefits unexpectedly fell in number last week to a two-month low, pointing to labour market strength that could pave the way for the Federal Reserve to raise interest rates by December.
Figures released Thursday by the U.S. Labor Department showed initial claims for state unemployment benefits declined 8,000 to a seasonally-adjusted 252,000 for the week ended Sept. 17. That's the lowest level since mid-July. Claims for the prior week were unrevised.
It was the 81st consecutive week that claims remained below the 300,000 threshold, which is associated with robust labour market conditions. That is the longest stretch since 1970, when the labour market was much smaller.
The Fed left interest rates unchanged on Wednesday, but strongly signaled it could raise borrowing costs by the end of the year, citing a recent pickup in economic growth and continued progress in the labour market.
Economists had forecast first-time applications for jobless benefits rising to 262,000 in the latest week. A department analyst said there were no special factors influencing last week's data and only claims for South Carolina had been estimated.
The four-week moving average of claims, considered a better measure of labour market trends, ironing out week-to-week volatility, fell 2,250 to 258,500 last week.
