WASHINGTON: US claims for unemployment benefits nudged slightly higher last week but a record streak of low levels showed no signs of letting up, the Labor Department reported Thursday.
The continued scarcity of layoffs pointed to another month of solid job creation in May as the data were collected during the survey week for the closely watched monthly US employment report.
For the week ending May 12, initial claims for unemployment insurance rose 11,000 to 222,000 claims, seasonally adjusted.
Despite the increase, the result still undershot economists' expectations, which called for 216,000 new claims.
The less volatile four-week moving average fell by 2,750 claims to 213,250 -- its lowest level since December of 1969.
Claims for jobless benefits have now held below the symbolic level of 300,000, the longest such stretch ever recorded.
And claims have now held below 250,000 for 26 weeks, confirming a recent trend that has hovered near 48-year lows since early this year.
With unemployment at only 3.9 percent, US employers face a widespread shortage of labor and are reluctant to lay off workers who will be difficult to replace.
Anecdotal reports and surveys indicate companies are beginning to raise wages and benefits in order to attract and retain workers, something that is beginning to eat into profits.
However, wage data continue to show sluggish growth in hourly pay.
Markets expect the Federal Reserve to raise rates next month for the second time this year as the increasingly tight labor market threatens to drive inflation higher.
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