Weekly unemployment claims up

The number of people seeking U.S. unemployment benefits rose last week, although the data were most likely skewed higher by seasonal factors.

The U.S. Labor Department said Thursday that weekly applications increased by 8,000 to 365,000. The four-week average, a less volatile measure, fell for the sixth straight week, to 365,500, the lowest since March 31.

The decline in the four-week average suggests the job market could be improving. But economists are viewing last month's figures with caution because the government struggles every July to account for temporary summer shutdowns in the auto industry. This year some automakers skipped shutdowns, resulting in fewer layoffs.

When the number of applications consistently falls below 375,000, it suggests hiring is strong enough to pull the unemployment rate down.

Starting next week, the data should be clear of influence from the annual auto plant retooling closures that make it difficult to adjust the data for seasonal variations, a Labor Department spokesman said.

The job market may take time to heal as a global slowdown and looming U.S. fiscal policy changes in the world's biggest economy keep employers reluctant to add workers. Unemployment above 8 percent is among the reasons Federal Reserve policymakers on Wednesday said they would take new steps, as needed, to boost the expansion.

"Companies are not panicking by cutting workers," said Ryan Sweet, a senior economist at Moody's Analytics Inc. in West Chester, Pa. "They are going to wait out the uncertainty related to Europe and the U.S. fiscal cliff."

-- Combined news services