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US unemployment claims rise

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Initial jobless claims, a sign of the pace of layoffs, rose to 399,000 in the week ending January 7, up 24,000 from the prior week's total of 375,000, the Labor Department said.

The figure was higher than economists had expected.

Steven Ricchiuto, chief economist at Mizuho Bank, said the figures pointed to an economy that was "muddling through".

"The sharp increase in claims following the end of the holiday season suggests that temporary employment was the driver behind the recent improvement in labor market conditions."

Large increases were seen in Michigan and Wisconsin, while a hefty decrease in claims was evident in California.

Around 4.1 million Americans get jobless benefits every week, down from around 4.8 million a year ago.

Copyright AFP (Agence France-Presse), 2012