US jobless claims decline for third straight week

WASHINGTON: The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting a rapid tightening of the labour market that bolsters expectations the Federal Reserve will raise interest rates next week. While another report on Thursday showed layoffs announced by US-based employers rising to a seven-month high in November, the overall trend in job cuts remained low. “Layoffs on the part of corporations are few and far between as good help is hard to find this far along in one of the longest economic expansions in the record books,” said Chris Rupkey, chief economist at MUFG in New York. Initial claims for state unemployment benefits slipped 2,000 to a seasonally adjusted 236,000 for the week ended December 2, the Labour Department said on Thursday. It was the third straight weekly decline in claims. — Reuters