US weekly jobless claims fall amid low layoffs

• The number of Americans filing new applications for jobless benefits fell last week, but tepid hiring could raise the unemployment rate to 4.3% in August.
• Initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 229,000 for the week ended August 23, the Labour Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims for the latest week.
• In addition, the number of people receiving benefits after an initial week of aid, a proxy for hiring, also fell 7,000 to a seasonally adjusted 1.954 million during the week ending August 16, the claims report showed. The so-called continuing claims data covered the week during which the government surveyed households for August's unemployment rate.
• A shrinking labour market pool because of the Trump administration's immigration crackdown is softening the impact of lacklustre hiring on the unemployment rate.
• Economists said reduced labour supply suggests the economy needs to create less than 90,000 jobs per month to keep up with growth in the working population. Many expect the unemployment rate to edge up to 4.3% in August from 4.2% in July.
• Higher continuing claims mirrored consumers' deteriorating perceptions of the labour market. A survey from the Conference Board on Tuesday showed the share of consumers viewing jobs as "hard to get" jumped to a 4-1/2-year high in August.

(Source: Reuters)