Unemployment claims rise after steady declines

WASHINGTON (AP) — The number of people seeking unemployment benefits rose last week after three weeks of declines to a level consistent with modest gains in hiring.

But broader trend over the past month suggests job growth could pick up in the new year.

Weekly applications increased by 15,000 to a seasonally adjusted 381,000, the Labor Department said today.

Still, the four-week average, a less-volatile measure, dropped for the fourth straight week to 375,000. That's the lowest level since June 2008.

Applications generally must fall below 375,000 — consistently — to signal that hiring is strong enough to reduce the unemployment rate.

While layoffs have fallen sharply since the recession officially ended two and a half years ago, many companies have been slow to add jobs.