US unemployment claims lift slightly, sparking talk of possible interest-rate hike
Washington — The number of Americans filing for unemployment benefits rose slightly last week and the four-week moving average of claims hit a 44-year low, suggesting a further tightening of the labour market that could encourage the Federal Reserve to raise interest rates in June. The economy’s brightening prospects were, however, dimmed somewhat by other data on Thursday showing the goods trade deficit widening in April and inventories decreasing, prompting analysts to pare their second-quarter GDP growth estimates. "Businesses are wisely hoarding labour and not laying off workers because there are no skilled workers to fill these jobs at corporations and companies across the country," said Chris Rupkey, chief economist at MUFG Union Bank in New York. Initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 234,000 for the week ended May 20, the labour department said. The increase followed three straight weeks of declines. Economists had forecast fi...
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