By Scott Kanowsky
Investing.com -- The number of Americans filing for unemployment insurance unexpectedly dropped last week, according to Labor Department data on Thursday, hinting at lingering tightness in the country's job market.
Seasonally adjusted initial jobless claims totaled 232,000 in the week ending August 27, a decrease of 5,000 compared to the prior level. Economists had anticipated the reading to climb to 248,000.
It is the third straight week of declines for jobless claims. Meanwhile, the four-week moving average, which smooths out volatility in the weekly figures, slid by 4,000 to 241,500.
The data point adds to an emerging picture of a labor market in robust health that could play into the Federal Reserve's monetary policy plans.
The central bank has already raised borrowing costs by 225 basis points since March in a bid to cool down red-hot inflation, and continued job market tightness may serve to bolster the case for keeping those rates higher for longer.
Economists say that jobless claims would need to register between 270,000 - 300,000 for there to be a sign of slowing in the labor market.
Meanwhile, on Tuesday, the Labor Department's preliminary monthly Job Openings and Labor Turnover Survey showed available jobs inched up to 11.24M in July, up from 11.04M in June and just under a record high reached earlier this year. The figure had been declining for three straight months since touching an all-time peak of 11.855M in March.
There were also 5.93M unemployed people in the U.S. in July, meaning there were just under 1.9 jobs available for a worker seeking a position. A higher ratio is typically seen as an indication of tightness in the overall labor market.
Focus will turn on Friday to the crucial employment report for August. Economists predict that nonfarm payrolls - which will not be impacted by the latest jobless claims - increased by 300,000 during the month after spiking by 528,000 in July.