Firings Remain Subdued Even as Jobless Claims Increase

Initial jobless claims rose by 4,000 to a seasonally adjusted 277,000 in the seven days stretching from Aug. 9 to Aug. 15, marking the highest level since early July.

As the claims processed by the states are reported on a weekly basis, they are watched closely as a leading indicator of job growth and the economy. Economists had forecast claims slipping to 272,000 last week.

The number of Americans seeking unemployment aid rose slightly last week, yet remained at a low level consistent with a solid job market.

The previous week’s average of claims was revised, with the new total amounting to 1,000 fewer applications than previously reported.

The gains could reassure Federal Reserve officials as they debate when and how quickly to raise short-term interest rates, which have been pinned near zero since the recession. Futures markets on Wednesday trimmed bets for monetary policy tightening next month. The claims data covered the week that the government surveyed employers for the nonfarm payrolls portion of August’s employment report.

To smooth the weekly volatility out, the four week-average is measured, and that figure climbed by 5,500 claims to 271,500. It was the 21st straight week that the four-week average remained below the 300,000 threshold, which is usually associated with a strengthening labor market. That is nearly 11 percent below the level one year ago.

Thursday’s report showed the number of continuing unemployment benefit claims-those drawn by workers for more than a week-declined 24,000 to 2,254,000 in the week ended August 8.