US initial jobless claims increased by 9,000 to a seasonally adjusted 197,000 in the week ending July 25, according to data released by the Labor Department. The figure came in below economists' expectations of 201,000.
The previous week's figure was revised upward by 1,000 to 188,000. The four-week moving average, which smooths out volatility, fell by 5,000 to 202,750.
Continuing claims, which measure the number of people still receiving benefits after an initial week of aid, declined by 7,000 to 1.782 million in the week ending July 18. The insured unemployment rate remained unchanged at 1.2%.
The latest claims data follow a June jobs report that showed the US economy added 57,000 jobs, well below market expectations of 110,000. The unemployment rate fell to 4.2% in June from 4.3% in May.