Wage Growth Sluggish; Jobless Claims Stable

First-time claims for U.S. jobless benefits last week held at a level suggesting an improving labor market, but wage growth in the last year has dragged along at its slowest pace in more than 20 years.

Wages rose 0.6% in the second quarter and are up just 2.5% over the last 12 months, the Labor Department said.

The department also said initial claims for state unemployment insurance rose 4,000 to 345,000 last week. Economists view claims below the 400,000 level as indicating an improving job market.