The number of Americans filing new claims for unemployment benefits increased moderately last week, pointing to only a gradual easing in labor market conditions.

Initial claims for state unemployment benefits rose 12,000 to a seasonally adjusted 248,000 for the week ended July 1, the Labor Department said on Thursday. Economists polled by Reuters had forecast 245,000 claims for the latest week.

Claims jumped to a 20-month high in the first three weeks of June amid a broadening in layoffs beyond the technology sector and interest rate-sensitive industries like housing and finance. Minnesota recently extended eligibility for state unemployment benefits to tens of thousands hourly paid school workers during the summer break, also contributing to the rise in filings.

The surge was reversed towards the end of the month, which some economists attributed to the Juneteenth holiday. Others, however, argued that the impact of the new holiday was unknown.

Claims, relative to the size of the labor market, are below the 280,000 level that economists say would signal a significant slowdown in job growth. Employment growth has averaged 314,000 jobs per month this year.

Source : Reuters