US jobless claims rise from 45-year low; labor market tightening

The number of Americans filing for unemployment benefits rebounded from a 45-year low last week, though by less than expected, pointing to tightening labor market conditions.Initial claims for state unemployment benefits increased 17,000 to a seasonally adjusted 233,000 for the week ended Jan. 20, the Labor Department said on Thursday. Claims fell to 216,000 in the prior week, the lowest level since January 1973.

Economists polled by Reuters had forecast claims rising to 240,000 in the latest week. Claims have been volatile recently because of the difficulty adjusting the data for seasonal fluctuations at the end of 2017 and the start of the new year. Unseasonably cold temperatures also had an impact on the data.

The Labor Department said claims for Maine were estimated. It also said claims-taking procedures in Puerto Rico and the Virgin Islands had still not returned to normal months after the territories were pummeled by Hurricanes Irma and Maria.