Weekly applications for unemployment insurance in the US increased more than estimated, while continuing claims also rose, government data showed Thursday.
For the week through May 9, the seasonally adjusted number of initial claims grew by 12,000 to 211,000, the Department of Labor said. The consensus was for a 205,000 reading in a Bloomberg poll. The previous week's reading was revised downwards by 1,000.
The four-week moving average totaled 203,750, up by 750 from the prior week's average that was revised lower by 250. Unadjusted claims increased by 10,258 to 190,571, the DOL said.
Seasonally adjusted continuing claims for the week ended May 2 reached 1.78 million, in line with Wall Street's expectations. Continuing claims climbed by 24,000 from the previous week's level, which was revised down by 8,000, according to the DOL. The four-week moving average fell by 6,750 to about 1.78 million from the prior week's downwardly revised figure.
"The latest jobless claims figures are largely consistent with other labor market data showing a stable-to-improving job market," Oxford Economics Lead US Economist Nancy Vanden Houten said in a note e-mailed to. "We can't say for certain, but we think the closure of Spirit Airlines earlier this month probably contributed to the rise in claims."
The now-defunct Spirit Airlines had an estimated 17,000 workers, according to Oxford Economics.
Last week, government data showed the US economy added more jobs than projected in April, while the unemployment rate remained unchanged at 4.3%.
"The ongoing (US) conflict with Iran could still have some spillover effects on the labor market, but for now the (Federal Reserve) should feel comfortable leaving policy on hold while it monitors inflation," Vanden Houten said Thursday.
Earlier this week, official data showed that annual US consumer inflation accelerated in April to the fastest pace in almost three years, as energy prices surged amid the near-complete closure of the Strait of Hormuz.
US President Donald Trump recently rejected Iran's counteroffer to end the war in the Middle East, though a fragile ceasefire between the two countries still holds.
