The number of US workers filing new claims for jobless benefits fell 5,000 last week, government data on Thursday showed, but claims remained near levels indicating a sluggish labor market amid a cooler economy. Prices for US Treasury bonds fell after the data and the dollar extended gains against the euro and yen as investors took the news as a sign that the labor market was not deteriorating as rapidly as some had feared it could. Initial claims for state unemployment insurance benefits declined to a seasonally adjusted 381,000 in the week ended June 14, from a revised 386,000 the prior week, the Labor Department said. “The data suggest that the labor sector continues on a pace of modest deterioration with the unemployment (rate) remaining elevated,” said Joseph Brusuelas, chief economist at Merk Investments. Investors suspect the Federal Reserve may respond to signals the labor market is mending by leaning toward higher interest rates, while evidence that employment is still soft could convince it to keep key rates on hold at 2 percent. Analysts polled by Reuters had forecast 375,000 new claims versus a previously reported count of 384,000 the week before. A Labor Department official said there were no special factors influencing the report. Weekly claims above the 400,000 level have been associated with US recessions in the past. Some economists think that the economy has already past that point.
