By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) -- The number of people filing first-time claims for unemployment benefits climbed 13,000 in the latest week to 472,000, indicating continued weakness in the labor market.
Although claims have fallen 22% from one year ago, they are up 4% since the start of 2010, according to data from the Labor Department. Weekly claims typically would have to fall below 400,000 to signify improved nationwide hiring trends.
Economists surveyed by MarketWatch had expected initial claims to fall to 455,000. See our complete economic calendar and consensus forecast.
The four-week average of initial claims -- a better gauge of employment trends than the volatile weekly number - rose by 3,250 to 466,500, the highest level in almost three months.
While claims tend to align with job growth over the longer term, the weekly data is prone to sharp fluctuations. A clearer picture of job growth will emerge Friday when the government releases its monthly employment report for June.
The U.S. economy is expected to have added 110,000 jobs, excluding the departure of temporary Census workers from government payrolls.
The economy added about 433,000 regular jobs, an average of 87,000 a month, through the first four months of 2010 before full-time hiring nearly dried up in May. The drop-off alarmed investors and stoked concerns that the economic recovery was faltering.
The number of workers who continue to receive unemployment checks, meanwhile, rose 43,000 to seasonally adjusted 4.62 million in the week ended June 19 - the latest data available.
In the week ended June 12, about 4.92 million jobless workers received extended federal benefits, down from 5.30 million. The figures are not seasonally adjusted.
Extended benefits are offered to some workers after they use up eligibility for state unemployment compensation, usually after 26 weeks. Congress has extended benefits for up to 99 weeks in the states hardest hit by the recession.
The extension has already expired, however, and lawmakers have not been able to agree on a proposal to renew it. As result, thousands of workers who have exhausted regular benefits are no longer receiving extra cash.
Altogether, 9.29 million people were collecting some type of unemployment benefits in the week ended June 12.
Some 8.2 million Americans lost their jobs during the height of the recession in 2008 and 2009 and many remain out of work. The lack of job growth has become a central issue between Democrats and Republicans as the fall congressional elections approach.
At the end of May, the U.S. unemployment rate stood at 9.7%, just slightly below a 27-year peak.
