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The number of Americans filing new claims for unemployment benefits increased more than expected last week, but that likely does not suggest a material shift in labor market conditions, which remain tight.
Initial claims for state unemployment benefits rose 17,000 to a seasonally 240,000 for the week ended Nov. 19, the Labor Department said on Wednesday.
Data for the prior week was revised to show 1,000 more applications filed than previously reported. Economists polled by Reuters had forecast 225,000 claims for the latest week.
The claims data was released a day early because of the Thanksgiving Day holiday on Thursday. Last week’s increase is most likely technical, with economists noting that the model that the government uses to adjust the data for seasonal fluctuations typically anticipates a rise in filings because of temporary company closures related to the holidays.
„Given the disruptions in labor markets, employers may be unwilling to lay people off even on a temporary basis as employers remain focused on employee retention,“ said Isfar Munir, an economist at Citigroup in New York.
