Initial claims for state unemployment benefits rose by 9,000 to a seasonally adjusted 200,000 in the week ended Nov 7, the US Labor Department said. (EPA Images pic)WASHINGTON: The number of Americans filing new claims for unemployment benefits increased more than expected last week, but remained at a level consistent with a stable labour market, allowing the Federal Reserve to focus on fighting inflation.

Economists expect layoffs to remain low through the end of the year, though seasonal volatility related to the holiday season could cause some spikes in the claims data. The government last week reported a surge in nonfarm payrolls in October and a decline in the unemployment rate to 4.1% from 4.2% in September. The resilience in the labour market is despite the ongoing Middle East conflict, which is boosting inflation.