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Initial claims for state unemployment benefits slipped 3,000 to
a seasonally adjusted 216,000 for the week ended Feb. 29, the
Labor Department said on Thursday. Data for the prior week was
unrevised.
Jobless claims are the most timely labor market indicator and
are being closely monitored for clues on the coronavirus' impact
on the economy.
Economists polled by Reuters had forecast claims would fall to
215,000 in the latest week. The Labor Department said claims for
Alabama, Michigan and Puerto Rico 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, rose 3,250 to 213,000 last week.
The coronavirus, which causes a flu-like illness, has killed
more than 3,000 people and sickened at least 90,000, mostly in
China. In the United States, 11 people have died from the
disease and the number of infections has exceeded 100.
The virus is disrupting supply chains and is also expected to
undermine exports and demand for transportation, leisure and
hospitality services. Financial markets fear that could derail
the longest economic expansion on record, now in its 11th year.
The Fed on Tuesday slashed its benchmark overnight interest rate
by a half percentage point to a target range of 1.00% to 1.25%.
It was the U.S. central bank's first emergency rate cut since
the height of the financial crisis in 2008.
Fed Chair Jerome Powell acknowledged the economy's strong
fundamentals, but said, "the coronavirus poses evolving risks to
economic activity."
Last week's claims data has no bearing on February's employment
report, which is scheduled for release on Friday.
According to a Reuters survey of economists, nonfarm payrolls
likely increased by 175,000 jobs last month after surging by
225,000 in January. The unemployment rate is forecast to be
steady at 3.6% in February.
The Fed's Beige Book on Wednesday, which is a survey of the
central bank's business contacts around the country, showed a
tight labor market was constraining hiring. It also noted that
manufacturers, retailers, and transportation companies reported
lower demand for labor in some districts.
Thursday's claims report also showed the number of people
receiving benefits after an initial week of aid increased 7,000
to 1.73 million for the week ended Feb. 22.
The four-week moving average of the so-called continuing claims
fell 7,500 to 1.72 million.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
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