Applications for US unemployment benefits slipped last week

WASHINGTON (AP) — Slightly fewer people filed for U.S. unemployment benefits last week, a sign the American job market remains healthy.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, suspects the flooding in Louisiana will put some people out of work and send unemployment claims higher over the next week.

Overall, he says, "employers remain fundamentally optimistic over the economic outlook."

Weak productivity growth could hobble the U.S. economy and keep a lid on pay gains.