US jobless claims rise from 7-year low

WASHINGTON, May 22 (AFP): New claims for US unemployment insurance benefits rose last week from a seven-year low as the labour market slowly improves, official data released Thursday showed.
Initial jobless claims, a measure of the pace of layoffs, totalled 326,000 in the week ending May 17, a gain of 28,000 from the prior week, the Labour Department said.
The previous week's number was revised up by 1,000 to 298,000, the first time the claims totalled less than 300,000 since May 2007.
The improving trend in the labour market was reflected in the four-week moving average of claims last week, which fell to 322,500, down by 1,000 from the prior week's slightly revised average.
A year ago the four-week average was 340,750.
Last week's rise in claims was more than analysts expected, with the average estimate of an increase to 305,000.
But the increase "leaves us back to levels from less than a month ago, before all of the distortions from Easter and spring break kicked in," said Jennifer Lee of BMO Capital Markets.
"Aside from the weekly wiggles, the improving trend in UI claims still points to strengthening job growth."
The US economy added 288,000 jobs in April, the strongest job growth in more than two years.
The unemployment rate fell to 6.3 per cent from 6.7 per cent in March. That was the lowest level in nearly six years, but it stemmed from a sharply shrinking labour force.