WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to a further tightening in labor market conditions.
Other data on Thursday showed a moderation in factory activity in the mid-Atlantic region in June amid a decline in new orders. Firms, however, continued to report overall increases in employment this month.
Initial claims for state unemployment benefits decreased 3,000 to a seasonally adjusted 218,000 for the week ended June 16, the Labor Department said. Economists polled by Reuters had forecast claims rising to 220,000 in the latest week. Claims have now declined for four straight weeks.
The labor market is viewed as being near or at full employment, with the jobless rate at an 18-year low of 3.8 percent. The unemployment rate has dropped by three-tenths of a percentage point this year and is near the Federal Reserve’s forecast of 3.6 percent by the end of this year.
The Labor Department said claims for Maine were estimated last week. The four-week moving average of initial claims, viewed as a better measure of labor market trends as it irons out week-to-week volatility, dropped 4,000 to 221,000 last week.
The claims data covered the survey period for the nonfarm payrolls component of June’s employment report. The four-week average of claims rose 7,500 between the May and June survey weeks, suggesting some moderation in job growth this month. Nonfarm payrolls increased by 223,000 jobs in May.
Prices of U.S. Treasuries edged up after the data while the dollar briefly held gains before falling against a basket of currencies. U.S. stock index futures were trading lower.
WORKER SHORTAGE
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