The number of Americans filing new claims for unemployment benefits rose more than expected last week, pointing to a labour market that is struggling to regain momentum.
Initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 418,000, the Labour Department said today.
US stock index futures held earlier gains after the data, while the dollar extended losses against the euro.
The claims data covered the survey period for the closely watched non-farm payrolls count for July, which will be released on 5 August.
Initial claims fell 11,000 between the June and July survey periods, suggesting a modest improvement in payrolls after June's paltry 18,000 gain.
Job growth has faltered in the last two months, in line with the generally weak tone in the US economy.
Initial claims have now been above the 400,000 mark for 15 straight weeks. That level is usually associated with a stable labour market.
The four-week moving average of claims, considered a better measure of labour market trends, slipped 2,750 to 421,250.
The number of people still receiving benefits under regular state programs after an initial week of aid dropped 50,000 to 3.70m in the week ended 9 July.
The number of Americans on emergency unemployment benefits declined 80,133 to 3.15m in the week ended 2 July, the latest week for which data is available.
A total of 7.33m people were claiming unemployment benefits during that period under all programs, down 159,000 from the prior week.
