Jobless Claim Average Signals Improvement

The Labor Department said Thursday that new claims for unemployment insurance rose last week, but remained in a range indicating that the job market was on the mend.

The number of new claims rose by 2,000, slightly above expectations, from the previous week to a seasonally adjusted 398,000. The four-week moving average, a more stable measure, fell 4,250 from the previous week to 394,250.

Many economists view a weekly new claims figure below 400,000 as a sign that the employment situation is improving. Weekly claims have remained below 400,000 for a month after spiraling above that level for much of the spring and early summer months.

Economist Steven A. Wood with Insight Economics said labor markets remained relatively weak but were expected to improve during the rest of the year.

“Although the pace of layoffs has slowed slightly, businesses have not yet begun to hire new workers,” he said in a report.

The Labor Department also said wholesale prices inched up 0.1% to a seasonally adjusted 142.8 in July following a 0.5% increase in June and a 0.3% drop in May.

Energy prices rose at a much slower rate in July than in June, and food prices dropped 0.2% after rising the previous month. Excluding energy and food prices, wholesale prices for finished goods rose 0.2% in July following a 0.1% decline the previous month.

Economists said the report showed that manufacturers found it extremely difficult to raise prices in the face of intense competition.