WASHINGTON, Jan 6 (Reuters) – New U.S. claims for unemployment benefits rose more than expected last week, but a
decline in the four-week average to a fresh low in more than two years indicated the labor market improvement remained
intact. Initial claims for state unemployment benefits increased 18,000 to a seasonally adjusted 409,000, the Labor Department said on Thursday, above economists’ expectations for 400,000. The prior week’s figure was revised up to 391,000 from the previously reported 388,000. The data falls outside the survey period for the government’s closely watched employment report for December. The government is expected to report on Friday that nonfarm payrolls increased 175,000 last month after November’s surprisingly small 39,000 gain. The unemployment rate is expected to have edged down to 9.7 percent from 9.8 percent in November.