The number of Americans filing for initial jobless benefits rose slightly last week but was in line with expectations near three-year lows, a government report showed on Thursday, offering signs of a stabilizing job market.
First-time claims for state unemployment insurance aid rose 1,000 to 339,000 in the week ended March 20 from 338,000 in the prior week. Analysts polled by Reuters were expecting claims to dip to 335,000 from the originally reported 336,000.
Jobless claims the week before last were the lowest since before the 2001 recession.
Moderating claims for unemployment benefits could mean that some of the slack in the job market is being taken up and that hiring is due for an upswing. Analysts will be watching next week's employment report closely for gains in payrolls, which are expected to rise by 100,000 after months of disappointments.
A lack of new jobs despite signs of relatively strong economic growth has become a key issue in campaigning for the November presidential election, with opposition Democrats claiming President George W. Bush's administration has done too little to create employment and to keep jobs from being moved to other countries where labor costs are lower.
The closely watched four-week moving average of initial jobless claims, which irons out weekly fluctuations, declined for a fourth straight week, falling to 341,500 from 344,500. It was the lowest figure for average claims since 336,500 were registered in the Jan. 27, 2001, week.
