US jobless claims fell last week

New data points to improving labour market conditions, despite two months of weak hiring

The number of Americans filing new claims for unemployment benefits fell last week, pointing to steadily improving labour market conditions, despite two straight months of weak hiring.

Other data today showed relentlessly cold weather putting a strain on household budgets, with electricity and heating fuel prices surging in January. However, inflation pressures remained muted.

Initial claims for state unemployment benefits declined 3,000 to a seasonally adjusted 336,000, the Labor Department said. That was mostly in line with economists’ expectations.

The claims data covered the survey week for February’s nonfarm payrolls report. Snow storms slammed parts of the country last week, which could have kept some workers at home.

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Bitterly cold weather was blamed for a sharp slowdown in hiring in December and January’s marginal bounce back. Claims have been tucked in a 325,000-348,000 range this year suggesting no fundamental shift in labor market conditions.

In a separate report, the department said weekly average earnings adjusted for inflation rose 0.1 per cent in January after sliding 0.5 per cent in December.

US financial markets were little moved by the data. (Reuters)