US jobless claims back off from lowest level since 1969; increase by 21,000

The number of Americans filing for unemployment benefits rebounded last week from a more than 48-year low, but the trend continued to point to robust labour market conditions.

That was underscored by other data on Thursday showing job cuts announced by US-based employers fell 20 per cent in February. Federal Reserve officials consider the labour market to be near or a little beyond full employment. The tight jobs market is seen boosting wage growth and spurring inflation.

Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 231,000 for the week ended March 3, the Labour Department said. Claims dropped to 210,000 in the prior week, which was the lowest level since December 1969.

Economists polled by Reuters had forecast claims rising to 220,000 in the latest week. It was the 157th straight week that claims remained below the 300,000 threshold, which is associated with a strong labour market. That is the longest such stretch since 1970, when the labour market was much smaller.