New applications for US unemployment benefits rose to a seasonally adjusted 200,000 in the week ended 7 November, the Labor Department said on Thursday, 12 November. The figure was 9,000 higher than the previous week's revised total of 191,000 and 5,000 above the 195,000 economists polled by Reuters had forecast.

The previous week's reading was revised up by 2,000 from 189,000. The four-week moving average, which smooths out weekly volatility, was unchanged at 195,250. Claims have stayed at or below 200,000 since mid-September and remain close to the 189,000 level touched in mid-July, the lowest since 1969.

Continuing claims fall to 1.697 million

The number of people still receiving benefits after an initial week of aid fell by 20,000 to a seasonally adjusted 1.697 million in the week ended 31 October, a proxy for hiring that points to workers finding new jobs. The insured unemployment rate held at 1.1%.

The figures follow a strong October jobs report, which showed payrolls surging and unemployment falling to 4.1% from 4.2% in September. Taken together, the data suggest a labour market cooling only slightly, with layoffs low and hiring steady rather than collapsing.

What it means for the Federal Reserve

The claims data arrived as markets were already focused on the Federal Reserve, after hotter-than-expected October inflation pushed traders to price in a near-certain interest rate rise in December. Low claims can ease worries about a sharp deterioration in jobs, but they also give the Fed less reason to rush to support the labour market. The next test comes on Friday, when the Labor Department publishes October producer prices. Reuters reports claims remain at a level consistent with a strengthening labour market, while Seoul Economic Daily notes the rise topped forecasts.

Sources: Reuters; Seoul Economic Daily