The number of Americans filing for unemployment benefits unexpectedly fell last week, hitting near a 49-year low in a sign the job market remains strong. Initial claims for state unemployment benefits fell by 3,000 to a seasonally adjusted level of 201,000 for the week ended Sept. 15, the Labor Department said on Thursday. That is the lowest level since November 1969. Data for the prior week's claims was unrevised. Economists polled by Reuters had forecast claims rising to 210,000 in the latest week. The Labor Department said only claims for Hawaii were estimated last week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, declined by 2,250 to 205,750 last week, the lowest level since December 1969. The labor market is viewed as being near or at full employment. It continues to strengthen, with nonfarm payrolls increasing by 201,000 jobs in August and annual wage growth notching its biggest gain in more than nine years. Job openings hit an all-time high of 6.9 million in July.<doc-sep>The number of Americans filing for unemployment benefits fell to near a 49-year low last week, pointing to sustained labor market strength that should continue to underpin economic growth. Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended Sept. 1, the lowest level since December 1969, the Labor Department said on Thursday. Data for the prior week was unrevised. Economists polled by Reuters had forecast claims rising to 214,000 in the latest week. The Labor Department said claims for California, Hawaii, Kansas, Maine, Puerto Rico and Virginia were estimated because of Monday's Labor Day holiday. That could have exaggerated the decline in claims last week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,750 last week to 209,500, also the lowest level since December 1969. Last week's claims data has no bearing on August's employment report, which is scheduled for release on Friday, as it falls outside the survey period. Claims were mostly low during the month. According to a Reuters survey of economists, nonfarm payrolls likely increased by 191,000 jobs last month after rising by 157,000 in July. The unemployment rate is forecast slipping one-tenth of a percentage point to 3.8 percent, revisiting an 18-year low touched in May.<doc-sep>WASHINGTON (Reuters) - The number of Americans filing new claims for unemployment aid fell to near a 49-year low last week and private payrolls rose steadily in August, pointing to sustained labor market strength that should continue to underpin economic growth. A man carrying a stack of job listings listens to a discussion at the One Stop employment center in San Francisco, California, August 12, 2009. REUTERS/Robert Galbraith The economy so far appears to be weathering an escalating trade war between the United States and China as well as tensions with other trade partners, including Canada, the European Union and Mexico, which have rattled financial markets. This likely keeps the Federal Reserve on track to raise interest rates this month for the third time this year. “The economy is in overdrive with jobless claims at lows not seen since the 1960s, and this gives the Fed the green light to raise interest rates later this month and take away some of the economy’s punch,” said Chris Rupkey, chief economist at MUFG in New York. The Labor Department said on Thursday initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended Sept. 1, the lowest level since December 1969. Economists polled by Reuters had forecast claims rising to 214,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,750 last week to 209,500, also the lowest level since December 1969. Though there have been reports of some companies either planning job cuts or laying off workers because of uncertainty caused by the Trump administration’s protectionist trade policy, that has not yet been reflected in the claims data. Economists say given labor market tightness, employers were reluctant to lay off workers. The labor market is viewed as being near or at full employment. U.S. stocks were trading mixed after the data while prices of U.S. Treasuries were slightly higher. The dollar was lower against a basket of currencies. STRONG JOB GROWTH Separately, the ADP National Employment Report showed private payrolls increased by 163,000 jobs last month. Data for July was revised to show private hiring rising by 217,000 jobs instead of the previously reported 219,000 positions. Economists polled by Reuters had forecast private payrolls increasing by 190,000 jobs last month. The ADP report, which is jointly developed with Moody’s Analytics, was published ahead of the government’s more comprehensive employment report for August, which is due on Friday. Though the ADP report has a spotty record predicting the private payrolls component of the employment report, economists said the August data hinted at some slowing in job growth. “Employment growth is still well above the pace needed to absorb new entrants into the labor force, meaning that the unemployment rate, which is already unusually low, should continue to decline gradually,” said Paul Ashworth, chief U.S. economist at Capital Economics in Toronto. According to a Reuters survey of economists, nonfarm payrolls likely increased by 191,000 jobs in August, which would be an acceleration from the 157,000 jobs created in July. The unemployment rate is forecast slipping one-tenth of a percentage point to 3.8 percent, revisiting an 18-year low touched in May. Should the August employment report meet market expectations on Friday, that would likely seal the case for a rate increase at the Fed’s Sept. 25-26 policy meeting. The economy grew at a 4.2 percent annualized rate in the second quarter, the fastest in nearly four years. Consumer and business spending data in July have suggested solid economic growth early in the third quarter. But there are concerns the trade tensions could hurt confidence and undercut spending. The economy’s vibrancy was underscored by a report on Thursday from the Institute for Supply Management (ISM) showing its non-manufacturing activity index increased 2.8 points to 58.5 last month. A reading above 50 indicates expansion in the sector, which accounts for more than two-thirds of U.S. economic activity. The ISM survey said respondents to its survey remained positive about business conditions and the economy, but cautioned that “logistics, tariffs and employment resources continue to have an impact on many of the respective industries.” While a fourth report from the Commerce Department showed factory goods orders dropped 0.8 percent in July amid weak demand for aircraft, business spending appeared to be picking up early in the third quarter. Orders rose 0.6 percent in June. July orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans, jumped 1.6 percent instead of increasing 1.4 percent as reported last month. Orders for these so-called core capital goods rose 0.8 percent in June. Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, increased 1.0 percent in July instead of climbing 0.9 percent as reported last month. Core capital goods shipments rose 1.0 percent in June. Business spending on equipment slowed in the second quarter after growing robustly since the first quarter of 2017. A fifth report from the Labor Department showed nonfarm productivity, which measures hourly output per worker, increased at an unrevised 2.9 percent annualized rate in the April-June quarter. That was the strongest pace since the first quarter of 2015. Productivity grew at a 0.3 percent rate in the first quarter.<doc-sep>The number of Americans filing for unemployment benefits fell to a near 49-year low last week, pointing to sustained labor market strength, which should continue to underpin economic growth. The labor market, which is viewed as being near or at full employment, is steadily boosting wage growth, which could help to support consumer spending as the stimulus from the Trump administration's $1.5 trillion tax cut package fades. Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended Sept. 29, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported. Claims fell to 202,000 during the week ended Sept. 15, which was the lowest level since November 1969. Economists polled by Reuters had forecast claims slipping to 213,000 in the latest week. The Labor Department said claims for South and North Carolina were affected by Hurricane Florence, which lashed the region in mid-September. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 500 to 207,000 last week.<doc-sep>
WASHINGTON (Reuters) - The number of Americans filing for unemployment benefits fell to a near 49-year low last week, pointing to sustained labor market strength, which should continue to underpin economic growth. People attend the Executive Branch Job Fair hosted by the Conservative Partnership Institute at the Dirksen Senate Office Building in Washington, U.S., June 15, 2018. REUTERS/Toya Sarno Jordan The labor market, which is viewed as being near or at full employment, is steadily boosting wage growth, which could help to support consumer spending as the stimulus from the Trump administration’s $1.5 trillion tax cut package fades. “The momentum in the labor market remains strong and we expect the unemployment rate to continue to decline,” said John Ryding, chief economist at RDQ Economics in New York. Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended Sept. 29, the Labor Department said on Thursday. That reversed the bulk of the increase from the prior week when claims were boosted by Hurricane Florence, which slammed North and South Carolina in mid-September. Applications fell to 202,000 during the week ended Sept. 15, which was the lowest level since November 1969. Economists polled by Reuters had forecast claims slipping to 213,000 in the latest week. The Labor Department said claims for North and South Carolina continued to be affected by the storm. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 500 to 207,000 last week. U.S. financial markets were little moved by the report. The claims data has no bearing on September’s employment report, which is scheduled for release on Friday. According to a Reuters survey of economists, nonfarm payrolls likely increased by 185,000 in September after surging 201,000 in August. The unemployment rate is forecast falling one-tenth of a percentage point to 3.8 percent, an 18-year low first hit in May. Payrolls growth could, however, surprise on the upside as data on Wednesday showed an increase in hiring by private companies in September and a jump in private sector jobs. The Federal Reserve raised interest rates last week for the third time this year and removed the reference to monetary policy remaining “accommodative.” FACTORY ORDERS REBOUND In a separate report on Thursday, the Commerce Department said new orders for U.S.-made goods recorded their biggest increase in nearly a year in August, but signs of weakness in business spending on equipment suggested manufacturing could be slowing. Factory goods orders surged 2.3 percent, the largest increase since September 2017, boosted by a surge in demand for aircraft, after falling 0.5 percent in July. Orders increased 8.6 percent on a year-on-year basis in August. Manufacturing, which accounts for about 12 percent of the U.S. economy, is being supported by robust domestic demand, but momentum is expected to gradually slow amid worker shortages, an increasingly bitter trade war between the United States and China, a strong dollar and moderating global growth. An Institute for Supply Management survey of manufacturers published on Tuesday showed factory activity retreated from a 14-year high in September. In August, orders for transportation equipment vaulted 13.1 percent, the largest gain since June 2017. That reflected a 69.1 percent surge in the volatile orders for civilian aircraft and parts. Orders for defense aircraft and parts soared 17.0 percent in August. Transportation orders fell 3.6 percent in July. Orders for motor vehicles rose 1.0 percent in August after increasing 1.6 percent in July. There were increases in orders for primary metals, fabricated metal products and electronic equipment, appliances and components. But orders for machinery and computers and electronic products fell. The Commerce Department also said August orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans, fell 0.9 percent instead of declining 0.5 percent as reported last month. Orders for these so-called core capital goods rose 1.5 percent in July. Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, dropped 0.2 percent in August instead of rising 0.1 percent as reported last month. Core capital goods shipments increased 1.2 percent in July. Business spending on equipment slowed in the second quarter after growing robustly since the first quarter of 2017.