Economists say given labor market tightness, employers were reluctant to lay off workers.
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The number of Americans filing new claims for unemployment aid fell to near a 49-year low last week and private payrolls rose steadily in August, pointing to sustained labor market strength that should continue to underpin economic growth.Economists polled by Reuters had forecast private payrolls increasing by 190,000 jobs last month.According to a Reuters survey of economists, nonfarm payrolls likely increased by 191,000 jobs in August, which would be an acceleration from the 157,000 jobs created in July.The economy grew at a 4.2 percent annualized rate in the second quarter, the fastest in nearly four years.While a fourth report from the Commerce Department showed factory goods orders dropped 0.8 percent in July amid weak demand for aircraft, business spending appeared to be picking up early in the third quarter.Shipments of core capital goods, which are used to calculate business equipment spending in the gross domestic product report, increased 1.0 percent in July instead of climbing 0.9 percent as reported last month.Productivity grew at a 0.3 percent rate in the first quarter.
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