The number of newly laid off workers filing claims for unemployment benefits in the United States shot up unexpectedly last week to reach the highest level in two months.
The US Labor Department reported that unemployment claims totalled 324,000 last week, up 10,000 from the previous week, to the highest level since mid-April.
While the big increase was unexpected, analysts said it did not change their view that the labour market is healthy despite a year-long economic slowdown caused by a steep slump in housing and troubles in the domestic car industry.
Analysts noted that even with the increase, claims remain close to their average over the first six months of this year of 319,000.
The increase last week pushed claims to the highest level since they stood at 325,000 for the week ending April 21st. The four-week average for claims rose to 314,500, the highest level since the first week in May. Claims have posted increases for three consecutive weeks.
Overall economic growth slowed to a lacklustre annual rate of 0.6 per cent in the first three months of this year, the weakest performance in four years. However, growth is expected to have rebounded in the current April-June quarter to a rate of 3 per cent or even better.
The Federal Reserve meets next week to review interest rates, with most analysts believing the central bank will leave rates unchanged.