First-time claims for U.S. unemployment benefits unexpectedly saw a modest increase in the week ended January 27th, according to a report released by the Labor Department on Thursday.
The Labor Department said initial jobless claims rose to 224,000, an increase of 9,000 from the previous week’s revised level of 215,000.
Economists had expected jobless claims to edge down to 212,000 from the 214,000 originally reported for the previous week.
The report said the less volatile four-week moving average also crept up to 207,750, an increase of 5,250 from the previous week’s revised average of 202,500.
The Labor Department also released a separate report showing U.S. labor productivity surged by more than expected in the fourth quarter of 2023.
The report said labor productivity shot up by 3.2 percent in the fourth quarter after soaring by a downwardly revised 4.9 percent in the third quarter.
Economists had expected labor productivity to jump by 2.5 percent compared to the 5.2 percent spike that had been reported for the previous quarter.
Meanwhile, the Labor Department said unit labor costs rose by 0.5 percent in the fourth quarter after falling by 1.1 percent in the third quarter.
Unit labor costs were expected to increase by 1.7 percent compared to the 1.2 percent slump that had been reported for the previous quarter.
At 10 am ET, the Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of January.
The ISM’s manufacturing PMI is expected to edge down to 47.0 in January from 47.4 in December, with a reading below 50 indicating a contraction.
The Commerce Department is also due to release its report on construction spending in the month of December at 10 am ET. Construction spending is expected to increase by 0.5 percent.