Job market stabilising in US

NEW US jobless claims rose a modest 6,000 last week, figures released yesterday show.

First-time claims for state unemployment benefits climbed to 388,000 in the week ending August 10 from a revised 382,000 in the prior week, the Labour Department said. That was well below the 396,000 measure for the same period a year ago.

New claims exceeded Wall Street's expectations for a marginal rise to 378,000 from the 376,000 Labour originally reported for the week ending August 3 .

While the initial claims figures have bounced up and down the past two-and-a half months, the overall trend has been downward, a sign that the job market is stabilising at a lower level.

But economic growth slowed in the second quarter and only generated a scant 6,000 new jobs in July, according to Labour's monthly employment report, as firms wary about the strength of the recovery kept a tight rein on hiring.

In a sign that people are still struggling to find work, so-called continued claims for those who have already drawn at least a week of benefits rose to 3.58 million in the week ended August 3, the latest week for which figures were available, and the highest since matching 3.58 million in the July 6 week.

The closely watched four-week moving average, a more reliable barometer of labour market trends because it irons out weekly fluctuations, rose to 381,750 in the week ended August 10 from 380,500 in the previous week.