US unemployment claims were unchanged last week, data that will do little to ease concerns about a recent slowdown in jobs growth.
The US Department of Labour said that initial claims for state unemployment benefits held steady at a seasonally adjusted 370,000.
The prior week's figure was revised up to 370,000 from the previously reported 367,000.
Futures for U.S. stocks added to losses following the data's publication. The data comes on the heels of three straight months of slowing employment gains.
Companies added 115,000 new jobs to their payrolls in April, the fewest in six months.
Today's report on claims covered the week for May's payrolls survey. The four-week average of new applications fell marginally between the April and May survey periods, suggesting not much change in labour market conditions.
Still, many economists think the April report gave an overly dim view of the economy, and pin the pull-back in job creation as payback for a mild winter that boosted gains in prior months.
The U.S. Federal Reserve appears disinclined to ramp up its support for the economy anytime soon unless the recovery stumbles. Minutes from the Fed's April meeting released yesterday supported that view.
While growth in hiring has slowed, the economy has given other signs of more spark. Data yesterday showed groundbreaking for U.S. homes rebounded in April and factory activity gained momentum.
Wal-Mart Stores Inc posted a better-than-expected quarterly profit on Thursday as Wal-Mart U.S. saw more shoppers come into existing stores and spend more.
A report by RealtyTrac showed foreclosure activity on U.S. homes dropped in April to the lowest level in nearly five years.
Still, Europe's debt crisis and the possibility that the tax burden of U.S. households could increase next year pose substantial risks for the economy. US Treasury Secretary Timothy Geithner acknowledged these risks before a group of business leaders in Baltimore, Maryland, also warning about higher oil prices.
"We face some very tough challenges. But they are manageable challenges for the United States. And I prefer our challenges to those of any economy anywhere in the world," he said.
The number of people still receiving benefits under regular state programs after an initial week of aid rose 18,000 to 3.27 million in the week ended May 5.
