The US labour market is still weakening, the Labour Department said today. Layoffs have increased and hiring remains slow. The four-week average for first-time claims for state unemployment benefits rose for the fourth straight week, climbing by 2,000 to 410,750 in the week ending 13 September. It's the highest since mid-July and nearly identical to the figure a year ago. Initial claims in the most recent week fell 29,000 to 399,000 after rising four weeks in a row, a hopeful sign should it continue.
Economists prefer to watch the trends in the four-week average, which smoothes out one-time events, such as weather and holidays. Continuing claims also rose to the highest level since mid-July. The four-week average for continuing claims gained 11,250 to 3.64 million. The insured unemployment rate - the percentage of covered workers receiving unemployment checks - stayed at 2.9pc. The claims figures will do little to cheer policymakers at the Federal Reserve, who just two days ago held interest rates steady while warning that labour markets were worsening. //www.fxcentre.com