US jobs report better than expected

The number of people applying for US unemployment benefits last week increased somewhat, even as the overall level stayed low enough, suggesting that the job market was firming up.

The Labor Department said yesterday that weekly applications were up by 8,000 to a seasonally adjusted 362,000.

The four-week average, which smoothes week-to-week fluctuations, continued to be at 355,000 - at the same level as last week, which was the lowest in four years.

In a note to clients, Detusche Bank economist Joseph LaVorgna said the bank was not concerned with the latest rise as the downtrend continued to remain in place.

Applications for benefits were down 14 per cent since October, and when the applications fell below 375,000, that generally signalled hiring was strong enough to reduce the unemployment rate. The steady decline comes with three months of big hiring gains.

The economy has added an average of 200,000 net jobs per month from November through January, which has helped lower the unemployment rate for five straight months to 8.3 per cent.