Weekly jobless claims increase 19,000 to 200,000
Continuing claims fall 19,000 to 1.384 million
Productivity plunges at 7.5 rate in first quarter

WASHINGTON, May 5 Reuters New claims for U.S. unemployment benefits increased to a more than twomonth high last week, but remained at a level consistent with tightening labor market conditions and further wage gains that could keep inflation hot for a while.

The report from the Labor Department on Thursday also showed the number of Americans collecting state unemployment checks was the smallest in more than 52 years towards the end of April. Economists brushed off last week39;s increase in initial claims, arguing that the data are volatile around moving holidays like Easter, Passover and school spring breaks.

The latest level of initial claims filings is still pretty low by broad historical standards, and continuing claims filings kept trending lower through today39;s report, so overall we believe that the labor market remains strong, said Daniel Silver, an economist at JPMorgan in New York.

Initial claims for state unemployment benefits rose 19,000 to a seasonally adjusted 200,000 for the week ended April 30, the highest since midFebruary. Economists polled by Reuters had forecast 182,000 applications for the latest week.

Claims at 200,000 are viewed as consistent with strong demand for workers. They have declined from a record high of 6.137 million in early April 2020.

The number of people receiving benefits after…