Two key gauges of initial filings for benefits at highest since February By Ruth Mantell, MarketWatch WASHINGTON (MarketWatch) -- The number of initial claims for regular state unemployment insurance benefits reached the highest level since February in the week ended Aug. 7, rising 2,000 to a total of 484,000, the Labor Department reported Thursday. Economists polled by MarketWatch had expected a level of 463,000 for first-time claims. See MarketWatch's economic calendar for more. The four-week average of initial claims -- a more accurate gauge of employment trends -- also rose, up 14,250 to 473,500. This level was the highest since February as well. While initial claims are down about 13% from the prior year's level, the data still reflect U.S. decidedly sluggish hiring trends. The government recently estimated that the unemployment rate remained at 9.5% in July, unchanged from June. For the week ended July 31, the initial-claims level was revised higher to 482,000 from a previous estimate of 479,000. The number of workers who continued to receive state unemployment checks fell by 118,000 in the week ended July 31, to 4.45 million. The four-week average of these continuing claims dropped to 4.52 million, down 64,500. All told, about 9.8 million people were collecting some type of unemployment benefit in the week ended July 24, up from about 8.6 million in the prior week. Much of the gain is from resumed payments to beneficiaries following Washington's recent approval of new federal funds for extended benefits. Extended benefits financed by the federal government are offered to some workers after they exhaust state unemployment insurance, which usually lasts 26 weeks. Benefits have been extended for up to 99 weeks in the states worst hit by the recession.

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