US jobless claims hold steady at low level

Washington: New claims for US jobless benefits edged downward last week, extending a record stretch of low levels and pointing to labor markets´ enduring strength, official data showed Thursday.

The latest figures on unemployment insurance suggest April job creation in the world´s largest economy will continue to be strong as the data were collected during the survey week for the Labor Department´s highly anticipated monthly jobs report.

Widespread reports of a deepening labor shortage in the United States have economists predicting a pickup in inflation this year as employers struggle to fill open positions and begin to offer higher pay.

Analysts say layoffs are at historic lows because companies are reluctant to dismiss workers they may not easily replace.

For the week ending April 14, new claims for jobless benefits fell by 1,000 to 232,000.

The result was marginally higher than economists had been expecting but marked the 22nd week in a row below the level of 250,000.

The less volatile four-week average rose 1,250 to 231,250.

Readings have been above 230,000 for three weeks but Ian Shepherdson of Pantheon Macroeconomics described this as an anomaly.

"Claims have been above the trend in recent weeks, likely as a result of seasonal adjustment problems caused by Easter," he said in a client note.

"These will now fade."

Claims have now held below the symbolic level of 300,000 for nearly three years, the longest such stretch since 1973.

However economists say that, when demographic changes are taken into account, the current levels are the lowest ever.

The Federal Reserve raised interest rates last month and is expected to do so at least twice more this year, with investors eyeing a possible fourth rate hike in December if price pressures mount.