US Jobless Claims Rise Slightly, Pointing to Continued Job Growth in January

WASHINGTON, Jan 23 (Reuters) - The number of Americans filing new claims for unemployment benefits increased slightly last week, suggesting that solid job growth likely continued in January.

Initial claims for state unemployment benefits rose 6,000 to a seasonally adjusted 223,000 for the week ended Jan. 18, the Labor Department said on Thursday.

Economists polled by Reuters had forecast 220,000 applications for the latest week. Frigid temperatures across much of the country and wildfires in California could boost claims in the coming weeks.

Stripping out the weather distortions, the labor market continues to advance, keeping the economic expansion on track.

Last week's jobless claims data covered the period during which the government surveyed businesses for the nonfarm payrolls component of its January employment report.

Nonfarm payrolls increased by 256,000 jobs in December. The economy added 2.2 million jobs last year, averaging 186,000 per month, down from 3.0 million in 2018.

The resilience of the labor market was one of the factors that led the Federal Reserve to reduce its projected interest rate cuts this year to just two, down from four in September when it began its monetary policy easing cycle.

The Trump administration's clampdown on immigration, as well as its proposed tax cuts and broad tariffs, which economists have warned could be inflationary, have also added to caution among Fed officials about the course of monetary policy.

Mass deportations and restrictions on legal immigration could make it harder to fill jobs, economists say.

No rate cut is expected at the Fed's policy meeting next week.

Since September, the Fed has lowered its benchmark overnight interest rate by 100 basis points to a range of 4.25% to 4.50%. The policy rate was raised a total of 525 basis points in 2017 and 2018.

Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, could offer more clues on the health of the labor market in January.

So-called continuing claims rose 46,000 to a seasonally adjusted 1.899 million for the week ended Jan. 11, the claims report showed.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)