US unemployment claims rise

WASHINGTON: The number of Americans filing new claims for unemployment benefits rose more than expected last week, but the trend remained consistent with sustained strength in the labor market.
Initial claims for state unemployment benefits increased by 17,000 to a seasonally adjusted 298,000 for the week ended Dec. 27, the Labor Department said on Wednesday. That followed four straight weeks of declines.
Economists polled by Reuters had forecast claims rising to 290,000 last week. Claims are volatile around the Christmas holiday period.
Despite last week’s increase, the trend in claims continued to point to a tightening labor market.
The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose only 250 to 290,750 last week. It has remained below the 300,000 mark for 16 straight weeks.
The Conference Board’s consumer confidence survey on Tuesday showed households were increasingly upbeat about prospects of securing employment.