Tag Archives: Unemployment

U.S. jobless claims rise to near three-month high

WASHINGTON, (Reuters) – – The number of Americans filing for unemployment benefits rose to near a three-month high last week, but remained below a level associated with a strong labor market.

Initial claims for state unemployment benefits increased 7,000 to a seasonally adjusted 265,000 for the week ended Oct. 29, the highest level since early August, the Labor Department said on Thursday. Claims for the prior week were unrevised.

It was the 87th consecutive week that claims remained below 300,000, a threshold associated with a healthy labor market.

That is the longest stretch since 1970, when the labor market was much smaller.

Economists polled by Reuters had forecast first-time applications for jobless benefits would be unchanged at 258,000 in the latest week.

The Federal Reserve on Wednesday left interest rates steady but said its monetary policy-setting committee “judges that the case for an increase in the federal funds rate has continued to strengthen.”

The U.S. central bank is widely expected to increase its overnight benchmark interest rate in December, but the decision could depend on the outcome of the Nov. 8 U.S. presidential election.

The tightening of the race between Democratic candidate Hillary Clinton and her Republican rival Donald Trump has rattled financial markets. The Fed raised borrowing costs last December for the first time in nearly a decade.

On Wednesday, the central bank offered a fairly upbeat assessment of the labor market, inflation and the broader economy.

A Labor Department analyst said there were no special factors influencing last week’s data and that no states had been estimated. There was a surge last week in the unadjusted claims for Kentucky, California and Missouri.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, increased 4,750 to 257,750 last week.

The report has no bearing on October’s employment report, which is scheduled for release on Friday, as it falls outside the survey period. According to a Reuters survey of economists, nonfarm payrolls likely increased 175,000 last month after rising 151,000 in September.

The unemployment rate is seen slipping one-tenth of a percentage point to 4.9 percent.

Thursday’s claims report also showed the number of people still receiving benefits after an initial week of aid declined 14,000 to 2.03 million in the week ended Oct. 22, the lowest reading since June 2000.

The four-week average of the so-called continuing claims fell 9,000 to 2.04 million. That was the lowest level since July 2000.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

U.S. job growth slows, clouds case for Fed rate hike

People wait in line to enter the Nassau County Mega Job Fair at Nassau Veterans Memorial Coliseum

By Jason Lange

WASHINGTON (Reuters) – U.S. employment growth unexpectedly slowed for the third straight month in September and the jobless rate rose, which could make the Federal Reserve more cautious about raising interest rates.

Nonfarm payrolls rose 156,000, down from a gain of 167,000 jobs in August, the Labor Department said on Friday.

Although the employment report suggested the U.S. economy was still expanding, it was expected to further reduce the chance of a rate increase at the Fed’s November policy meeting. There is, however, a much higher likelihood of a hike at the U.S. central bank’s last meeting of the year in December.

“It’s strong enough that you’re not worried about the U.S. slipping” into an economic slump, said Michael Jones, an investment officer at RiverFront Investment Group in Richmond, Virginia. “But it’s not so strong that it precipitates immediate action from the Fed.”

U.S. stock futures moved sharply higher after the payrolls report, while the dollar pared gains against a basket of currencies. Prices for U.S. Treasuries rose.

Fed Chair Janet Yellen has said the economy needs to create less than 100,000 jobs a month to keep up with population growth. Average monthly job gains have been about 180,000 this year, which Yellen has described as “unsustainable.”

Economists polled by Reuters had expected employers to add 175,000 jobs last month. The government said 7,000 fewer jobs were created in August and July than had been previously reported.

The unemployment rate ticked up a tenth of a percentage point to 5.0 percent in September. The increase was driven by Americans rejoining the labor force, which suggests slack remains in the job market.

Hourly wages for private sector workers rose 2.6 percent in September from the same month a year earlier, in line with economists’ expectations. The annual growth rate in hourly wages has shown signs of accelerating over the last year although it remains slower than before the 2007-2009 recession.

Friday’s employment report will be the last before the Fed’s Nov. 1-2 policy meeting. Investors see almost no chance of a rate increase at that meeting given how close it is to the Nov. 8 U.S. presidential election.

DIVIDED FED

Yellen said last month that the Fed will likely raise rates once this year, but prices on fed funds futures suggest just above even odds the increase will come in December.

Three Fed policymakers voted for a hike last month when the central bank kept rates steady. However, Friday’s data could boost the case of Fed policymakers who have vocally defended a go-slow approach to rate increases.

Republican presidential candidate Donald Trump has accused the Fed of playing politics by holding rates low, a charge Yellen and other Fed policymakers have denied.

Trump has also made reversing job losses at U.S. factories a central campaign promise. Manufacturing employment fell by 13,000 jobs in September and the sector has shed jobs in three of the last five months.

At the same time, the job market on balance continues to firm, even if at a slower pace, which could be an asset for Democratic presidential candidate Hillary Clinton. She has argued that Democratic President Barack Obama’s policies have helped the economy create millions of jobs.

The Fed lifted its benchmark overnight interest rate at the end of last year for the first time in nearly a decade, but has held it steady so far this year amid concerns over persistently low inflation.

(Reporting by Jason Lange; Additional reporting by Samuel Forgione in New York; Editing by Paul Simao)

Cisco to lay off about 14,000 employees: tech news site CRN

person walking past Cisco logo

(Reuters) – Cisco Systems Inc is laying off about 14,000 employees, representing nearly 20 percent of the network equipment maker’s global workforce, technology news site CRN reported, citing sources close to the company.

Cisco, which is due to report fourth-quarter results later on Wednesday, is expected to announce the cuts within the next few weeks, the report said. (http://bit.ly/2bEQfa3)

“We think it’s true,” Jefferies analysts wrote in a client note, referring to the report.

“As we’ve met with investors in recent weeks, we’ve picked up on concerns that Cisco may be looking to reduce headcount in the not-too-distant future.”

If confirmed, it would be the second big tech industry layoff of a similar scale announced this year. Intel Corp said in April that it would slash up to 12,000 jobs globally, or 11 percent of its workforce.

San Jose-based Cisco is facing sluggish spending by telecom carriers and enterprises on network switches and routers, its main business. In response, the company has been beefing up its wireless security and datacenter businesses.

These rumored cuts, if they turn out to be true, would be a bit of a catch-up the company is doing as it moves away from hardware, Needham & Co analyst Alex Henderson said.

“I do not think that they are going to be done after this,” Henderson said.

The company has already offered many early retirement packages to employees, the CRN report said.

Cisco, which had more than 70,000 employees as of April 30, declined to comment.

The company’s shares were down 1.4 percent at $30.71 on Wednesday on the Nasdaq.

Jefferies raised its price target on the stock to $35 from $30.72 and maintained its “buy” rating.

Up to Tuesday’s close, Cisco’s stock had risen about 15 percent this year, compared with a 10.5 percent increase in the Dow Jones U.S. Technology Hardware & Equipment index.

(Reporting by Ankit Ajmera, Bhanu Pratap and Supantha Mukherjee and Rishika Sadam in Bengaluru; Editing by Sandra Maler, Sunil Nair and Anil D’Silva)

As exports struggle, Israel’s economy faces slower growth

supermarket employee in Israel

By Steven Scheer

JERUSALEM (Reuters) – For decades, Israel’s high growth was driven by exports of oranges, diamonds, pharmaceuticals and software, but the picture is changing due to weak global demand and a strong shekel.

Consumer spending is now a critical growth driver. Businesses fear factories and jobs are at risk if exports, which have declined 10 percentage points over the past decade, fall further.

“We are exporting 80 percent less than our peak” a decade ago, said Joseph Ben-Dor, chief executive of Ben-Dor Fruits & Nurseries on the Jordan River in northern Israel.

Ben-Dor, whose family started the business in 1888, said his main market is Europe, particularly Britain where his largest customers for plums and other fruits are Tesco, Marks & Spencer, Morrisons and Waitrose. He largely blames a strong shekel, rising water, labor and other costs, and government obstacles for lower sales abroad.

Diamond exports, 25-30 percent of Israel’s industrial exports, have slid 30 percent in the past few years, mainly on slower global demand, said Yoram Dvash, president of the Israel Diamond Exchange. Exports to China, a key market, have plunged 70 percent in the last 18 months.

Citing weak global growth that has hurt exports, Israel’s Finance Ministry on Wednesday lowered its economic growth forecast for 2016 to 2.5 percent from 2.8 percent and trimmed estimates through 2019.

The Bank of Israel last month cut its growth estimate from 2.8 percent to 2.4 percent for 2016 and 2.9 percent in 2017.

When exports are hot, Israel’s economy tends to grow between 4 and 5 percent a year. With flat or declining exports in 2014, 2015 and probably again this year, growth is closer to 2.5 percent, well below the average of 4.5 percent from 2004-2011.

“If the trend continues we can witness sustained private consumption growth but we will shift to a lower growth rate,” Nathan Sussman, head of research at the Bank of Israel, said. “Growth will likely be in the 2.5 to 3 percent range if it stays this way.”

With the population growing 2 percent a year, that amounts to per capita growth of just 0.5-1 percent.

NO MAGIC PILL

Ten years ago, net exports accounted for 41 percent of output. Now the ratio is 31 percent. While that tops the 13 percent in the United States and 27 percent for Europe, the decline has strained the economy.

“We need to target growth of 4 to 5 percent so if you want to reach that, you need to turn on the engine of exports,” said Shraga Brosh, president of Israel’s Manufacturers’ Association.

Brosh said the government needed to invest more in research and development and encourage small- and medium-sized factories to become more efficient through tax incentives.

Ohad Cohen, head of the Foreign Trade Administration in the Economy Ministry, said there was only so much the government could do. “We don’t have any magic pill,” he said.

Still, the ministry supports exporters with insurance guarantees and in opening new markets. In recent years, it has doubled the number of offices in Asia to 16. Asia now accounts for 22 percent of Israel’s exports, compared with 31 percent for Europe and 25 percent for the United States.

Israel plans to invest in penetrating markets in Africa and Latin America, Cohen said.

Exports excluding diamonds and start-ups are forecast to fall 1.5 percent this year after a similar decline in 2015. Much of the weakness has come from Europe, in part because the euro has lost 15 percent against the shekel since late 2014.

Another issue is that three companies – Intel, Israel Chemicals (ICL) and Teva Pharmaceutical Industries – control nearly half of industrial exports. For various reasons they have trimmed output.

Intel is shifting production to a new chip plant in Israel, while falling demand and prices for potash have weighed on ICL. Teva said its exports are “characterized with monthly and seasonal fluctuations” but are not falling on an annual basis.

Concerned by sluggish exports, the central bank continues to buy dollars to try to prevent further shekel strength. It has bought about $70 billion of foreign currency since 2008, but the shekel has not weakened enough to spur an export recovery.

(Editing by Janet Lawrence)

U.S. jobless claims hover at lower levels

Job seekers fill out applications during 11th annual Skid Row Career Fair the Los Angeles Mission in Los Angeles

By Lucia Mutikani

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits unexpectedly held at lower levels last week, pointing to further momentum in the labor market after job growth surged in June.

Another report on Thursday showed producer prices recorded their biggest gain in a year in June on rising costs for energy products and services. The data signaled economic strength that could allow the Federal Reserve to raise interest rates later this year.

Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 254,000 for the week ended July 9, the Labor Department said. Claims are near the 43-year low of 248,000 touched in mid-April.

Economists polled by Reuters had forecast initial claims rising to 265,000 in the latest week. Claims have now been below 300,000, a threshold associated with a healthy labor market, for 71 consecutive weeks, the longest stretch since 1973.

The labor market is on a strong footing, with nonfarm payrolls having increased by a robust 287,000 jobs in June, which should underpin economic growth for the rest of the year.

Prices for U.S. Treasuries fell slightly and the dollar pared losses against a basket of currencies after Thursday’s data. U.S. stock futures were trading higher.

In a second report, the Labor Department said its producer price index for final demand rose 0.5 percent last month, the largest increase since May 2015, after advancing 0.4 percent in May.

In the 12 months through June, the PPI increased 0.3 percent, rising for the first time since December 2014, after slipping 0.1 percent in May.

Producer inflation is being boosted by the fading drag from a strong dollar and lower oil prices.

The dollar’s surge between June 2014 and December 2015 put downward pressure on producer prices, helping to keep inflation below the Fed’s 2 percent target.

The greenback’s rally appears to be over. The currency has slipped on a trade-weighted basis this year while oil prices have rebounded from multi-year lows.

Last month, energy prices jumped 4.1 percent after increasing 2.8 percent in May. Prices for services rose 0.4 percent after gaining 0.2 percent in May. Services were boosted by a surge in costs related to securities brokerage and dealing.

Healthcare costs were unchanged as a 0.1 percent rise in doctor visits was offset by weak home healthcare services.

A key measure of underlying producer price pressures that excludes food, energy and trade services rose 0.3 percent last month after edging down 0.1 percent in May. The so-called core PPI was up 0.9 percent in the 12 months through June. The core PPI increased 0.8 percent in May.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

Millions of S.E. Asian jobs may be lost to automation

Humanoid robots work side by side with employees in the assembly line at a factory of Glory Ltd., a manufacturer of automatic change dispensers, in Kazo, north of Tokyo, Japan,

SINGAPORE (Reuters) – More than half of workers in five Southeast Asian countries are at high risk of losing their jobs to automation in the next two decades, an International Labour Organization study found, with those in the garments industry particularly vulnerable.

About 137 million workers or 56 percent of the salaried workforce from Cambodia, Indonesia, the Philippines, Thailand and Vietnam, fall under the high-risk category, the study showed.

“Countries that compete on low-wage labor need to reposition themselves. Price advantage is no longer enough,”  said Deborah France-Massin, director for the ILO’s bureau for employers’ activities. The report said workers have to be trained to work effectively alongside digitalized machines.

Southeast Asia is home to more than 630 million people and is a hub for several manufacturing sectors, including textiles, vehicles and hard disk drives.

Of the 9 million people working in the region’s textiles, clothing and footwear industry, 64 percent of Indonesian workers are at high risk of losing their jobs to automation, 86 percent in Vietnam, and 88 percent in Cambodia.

Garment manufacturers in Cambodia, who take orders from  retailers such as Adidas, Marks and Spencer and Wal-Mart Stores Inc, employ about 600,000 people.

Neighboring Vietnam is seeing record investment in its footwear and textiles industries, due to new free-trade pacts with major markets, including the U.S.-led Trans-Pacific Partnership. It is the second-largest garment supplier behind China to the United States.

The United Nations agency said technologies including 3D printing, wearable technology, nanotechnology and robotic automation could disrupt the sector.

“Robots are becoming better at assembly, cheaper and increasingly able to collaborate with people,” the ILO said.

The textiles, clothing and footwear sector is at the highest risk of automation out of five industries analyzed in the study, including automotive and auto parts, electrical and electronics, business process outsourcing and retail.

In the automotive and auto parts industry, more than 60 percent of salaried workers in Indonesia, and over 70 percent of those in Thailand face the risk of their jobs being displaced.

Southeast Asia’s automotive sector, the seventh-largest producer of vehicles in 2015 globally, employs more than 800,000 workers, the report said.

Known as the “Detroit of Southeast Asia”, Thailand is a regional production and export hub for the world’s top carmakers. The auto sector accounts for around 10 percent of Thai GDP and employs a 10th of its workers in manufacturing.

(Reporting by Aradhana Aravindan; Editing by Jacqueline Wong)

Housing, medical care support U.S. underlying inflation

Job seekers at job fair

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer prices moderated in May, but sustained increases in housing and healthcare costs kept underlying inflation supported, which could allow the Federal Reserve to raise interest rates this year.

While another report on Thursday showed an increase in the number of Americans applying for unemployment benefits last week, the trend remained consistent with a healthy labor market. The data came a day after the Fed downgraded its assessment of the jobs market and gave a mixed view of the economy.

The Labor Department said its Consumer Price Index increased 0.2 percent last month, slowing from April’s 0.4 percent rise. Gasoline prices rose modestly and the cost of food fell.

In the 12 months through May, the CPI gained 1.0 percent after advancing 1.1 percent in April.

Stripping out the volatile food and energy components, the so-called core CPI, increased 0.2 percent after a similar gain in April. That took the year-on-year core CPI rise to 2.2 percent from 2.1 percent in April.

Economists polled by Reuters had forecast the CPI gaining 0.3 percent last month and the core CPI rising 0.2 percent.

The Fed has a 2 percent inflation target and tracks an inflation measure which is currently at 1.6 percent. The U.S. central bank on Wednesday kept interest rates unchanged and said it expected inflation to remain below its target through 2017.

While the Fed signaled it still planned two rate hikes this year, there was less conviction, with six officials expecting only a single increase, up from one in March. The Fed raised its benchmark overnight interest rate in December for the first time in nearly a decade.

The dollar extended losses against the yen on the data, while prices for U.S. government debt were little changed.

FOOD PRICES FALL

Last month, gasoline prices rose 2.3 percent after surging 8.1 percent in April. Food prices fell 0.2 percent, reversing the prior month’s increase.

Within the core CPI basket, housing and medical costs maintained their upward trend. Owners’ equivalent rent of primary residence rose 0.3 percent after rising by the same margin in April.

Medical care costs increased 0.3 percent after a similar gain in April. The cost of hospital services shot up 0.7 percent after rising 0.3 percent the prior month. Doctor visit costs rose 1.0 percent, but the cost of prescription medicine fell 0.4 percent after increasing 0.7 percent in April.

Apparel prices rose 0.8 percent. The cost of used cars and trucks dropped 1.3 percent, the biggest fall since March 2009. Prices for new motor vehicles fell 0.1 percent.

In a second report, the Labor Department said initial claims for state unemployment benefits increased 13,000 to a seasonally adjusted 277,000 for the week ended June 11.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, slipped 250 to 269,250 last week.

Jobless claims have now been below 300,000, a threshold associated with a strong job market, for 67 straight weeks, the longest streak since 1973. The Fed said on Wednesday “the pace of improvement in the labor market has slowed while growth in economic activity appears to have picked up.”

The U.S. central bank also noted that while the unemployment rate had declined, “job gains have diminished.”

But with job openings near record highs, both economists and Fed officials expect job growth to pick up after the economy added only 38,000 jobs in May, the smallest increase since September 2010.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

U.S. jobless claims fall more than expected

A job seeker listens to a recruiter from the Federal Bureau of Prisons at a health care job fair sponsored by the Colorado Hospital Association in Denver

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits fell more than expected last week, moving back to near cycle lows as the labor markets remain healthy and the economy regains momentum after stumbling in the first quarter.

Initial claims for state unemployment benefits declined 10,000 to a seasonally adjusted 268,000 for the week ended May 21, the Labor Department said on Thursday. Claims for the prior week were unrevised.

Economists polled by Reuters had forecast initial claims falling to 275,000 in the latest week. Claims have now been below 300,000, a threshold associated with a strong job market, for 64 straight weeks, the longest stretch since 1973.

While the two consecutive weeks of decline helped to unwind some of the jump in claims between late April and early May, the trend in jobless claims has become less favorable.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 2,750 to 278,500 last week.

Economists blame a range of factors for the recent spike in claims, including the different timing of school spring breaks, which often makes it difficult to adjust the data. An ongoing strike by Verizon workers as well as possible disruptions to manufacturing activity in the wake of recent earthquakes in Japan have also been cited.

Economists expect the strike by the about 40,000 Verizon employees will hurt May payrolls because they would be considered unemployed as they would not have received a paycheck during the survey period. The government will release its closely watched employment report next Friday.

A Labor Department analyst said there were no special factors influencing last week’s claims data and only claims for Wyoming had been estimated.

The claims report showed the number of people still receiving benefits after an initial week of aid rose 10,000 to 2.16 million in the week ended May 14. The four-week average of the so-called continuing claims increased 8,500 to 2.15 million.

The continuing claims data covered the period during which the government surveyed households for May’s unemployment rate.

The four-week average of continuing claims fell 6,000 between the April and May survey periods. That suggests little change in the unemployment rate, which was at 5.0 percent in April.

(Reporting By Lucia Mutikani, Editing by Andrea Ricci)

Americans filing for unemployment benefits bouncing back

ob applicants await their turn at the Lockheed Martin booth at "Hiring Our Heroes" military job fair in

WASHINGTON, (Reuters) – The number of Americans filing for unemployment benefits bounced back from a 42-1/2-year low last week, but the underlying trend remained consistent with tightening labor market conditions.

Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 257,000 for the week ended April 23, the Labor Department said on Thursday.

Claims for the prior week were revised to show 1,000 more applications than previously reported.

Economists polled by Reuters had forecast claims rising to 260,000 in the latest week. Jobless claims have now been below 300,000, a threshold associated with healthy labor market conditions, for 60 weeks, the longest stretch since 1973.

A Labor Department analyst said there were no special factors influencing last week’s claims data and no states hadbeen estimated.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 4,750 to 256,000 last week, the lowest since December 1973.

The number of people still receiving benefits after an initial week of aid decreased 5,000 to 2.13 million in the week ended April 16, the lowest since November 2000.

The four-week average of the so-called continuing claims declined 10,500 to 2.16 million, the lowest reading since November 2000. The continuing claims data covered the survey week for April’s unemployment rate.

The four-week average of continuing claims fell 47,750 between the March and April survey periods, suggesting an improvement in the unemployment rate. The jobless rate was at 5.0 percent in March.

(Reporting By Lucia Mutikani; Editing by Andrea Ricci)

U.S. jobless claims reach six-month high, spurring labor market worries

WASHINGTON (Reuters) – The number of Americans filing for unemployment benefits rose to a six-month high last week, suggesting some loss of momentum in the labor market amid a sharp economic slowdown and major stock market selloff.

Another report on Thursday showed factory activity in the mid-Atlantic region improved in January as shipments rebounded, but still contracted for a fifth straight month. That indicates national manufacturing activity remained in the doldrums at the start of this year.

Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 293,000 for the week ended Jan. 16, the highest reading since early July, the Labor Department said. It was the second straight week of gains and confounded economists’ expectations for a drop to 278,000.

“The picture does not look great. Unemployment claims need to come back down in a hurry to make us sure that the jobs market has not lost its edge,” said Chris Rupkey, chief economist at MUFG Union Bank.

While layoffs appear to have picked up a bit in recent weeks, the increases might not suggest a material weakening in labor market conditions as claims data is difficult to adjust around this time of the year.

Claims have now been below the 300,000 mark, which is associated with strong labor market conditions, for 46 straight weeks. That is the longest streak since the early 1970s.

The jump in claims came against the backdrop of a stock market rout that has seen the S&P 500 index drop 8.4 percent since Dec. 31.

At the same time, data on retail sales, exports, inventories and industrial production have suggested economic growth slowed abruptly at the end of 2015. The economy has been buffeted by the headwinds of a strong dollar, slowing global demand and relentless spending cuts in the energy sector.

An inventory overhang has also left businesses placing fewer new orders with factories, leading to predictions that fourth-quarter gross domestic product increased at an annual rate of less than 1 percent after expanding at a 2 percent pace in the July-September quarter.

Stocks on Wall Street were trading higher on European Central Bank President Mario Draghi’s comments that the ECB could “review and possibly reconsider” its monetary policy stance when it meets in March.

U.S. Treasuries fell marginally, while the dollar firmed to a two-week high against the euro.

OIL PAIN

The increase in jobless claims so far this month has been concentrated in oil-producing states like Texas, Louisiana and Alaska. Outside the energy, mining and manufacturing sectors, which have been devastated by a slump in crude oil prices and the impact of a strong dollar, layoffs have been generally low as the labor market approaches full employment.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 6,500 to 285,000 last week, the highest reading since mid-April.

The claims data covered the survey period for January nonfarm payrolls. The four-week average of claims rose 14,250 between the December and January survey periods. While that suggests a drop in payroll gains from December’s robust 292,000 jobs, employment growth in January is expected to top 200,000.

“Our first threshold of concern on payrolls would be a four-week average above 325,000, which would signal to us a significant pickup in layoff activity,” said John Ryding, chief economist at RDQ Economics in New York. “At this point, therefore, the rise in claims is not a concern to us, but we will be watching these data closely over the next few weeks.”

In a separate report, the Philadelphia Federal Reserve said its general activity index rose to -3.5 this month from a reading of -10.2 in December.

The new orders index remained negative, but increased 10 points to -1.4, while the shipments index increased 12 points, its first positive reading in four months. Factories in the mid-Atlantic region continued to report a drop in inventories, as well as shrinking order books and shorter delivery times.

“Slowing global growth and a strong dollar will continue to weigh on the manufacturing sector, but this report suggests lower odds of another sharp break downwards,” said Jesse Edgerton, an economist at JPMorgan in New York.

(Reporting by Lucia Mutikani; Editing by Paul Simao)