New applications for U.S. unemployment benefits rose last week in yet another sign that companies remain reluctant to hire, government data showed.
Initial claims for state benefits climbed by 10,000 to a seasonally adjusted 418,000 in the week ended July 16, the Labor Department said Thursday.
The latest figures include 1,750 state workers in Minnesota who filed for temporary benefits during a brief government shutdown that has now ended.
Jobless claims have hovered about the key 400,000 mark for almost four months after touching a three-year low of 375,000 in late February.
The number of applications usually, but not always , falls well below that mark in a period of rapid hiring and strong economic growth Economists surveyed by MarketWatch has expected new requests for jobless benefits to fall 403,000.
Claims in the prior week were revised up to 408,000 from an original reading of 405,000.
The average of new claims over the past four weeks, meanwhile, dipped 2,750 to 421,250, the lowest level since late April.
The four-week average is seen as a more accurate a barometer of labor trends because smooths out volatility in the week-to-week data.
The claims report dovetails with other data this week showing little change in a struggling U.S. economy.
The number of new jobs being created has fallen off dramatically after several large increases in early 2011.
As a result, the U.S. unemployment rate has climbed to 9.2% from 8.8% in March.
The lack of hiring means less money in people’s pockets and less consumer spending, which accounts for more than two-thirds of U.S. growth.
Until hiring accelerates, the economy is likely to continue to struggle.
Meanwhile, the Labor Department said the number of Americans who continue to receive state unemployment checks decreased by 50,000 to 3.7 million in the week ended July 9.
Continuing claims are reported with a one-week lag.
In addition, 3.7 million people received extended federal benefits in the week ended July 2, down about 133,000 from the prior week.
The U.S. government offers extended relief to most workers who have used up state benefits, which usually last six months.
A total of 7.33 million people received some kind of state or federal benefit in the week of July 2, down 159,696 from the prior week. Total claims are reported with a two-week lag.
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