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4/4/14

US economy: Jobless claims edge unexpectedly higher

The number of Americans filing new claims for unemployment benefits rose more than expected last week, but the underlying trend continued to point to some strength in the labor market.

Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 326,000, the Labor Department said on Thursday. Economists had forecast first-time filings for jobless aid rising to 317,000 in the week ended March 29.

The four-week moving average for new claims, considered a better measure of underlying labor market conditions as it irons out week-to-week volatility, hovered near six-month lows, indicating a firmer bias in the labor market.

"It's broadly consistent with moderate growth in the jobs market," said Michael Hanson, a senior economist at Bank of America Merrill Lynch in New York.

Despite last week's increase, claims have been generally stable in March, which should support expectations of an acceleration in job growth during the month.

The government's closely watched employment report on Friday is expected to show nonfarm payrolls increased by 200,000 jobs last month after rising 175,000 in February, according to a Reuters survey of economists. The unemployment rate is seen falling one-tenth of a percentage point to 6.6 percent.

A report on Wednesday showed private employers stepped up hiring in March for a second straight month.

Read more: US economy: Jobless claims edge unexpectedly higher | Economy | GMA News Online

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