Jobless Claims Rise Slightly For the Week

Meanwhile, an index of signed contracts for home purchases in November rose 7.3 percent, to 100.1 points, the highest level in a year and a half, according to a report Thursday from the National Association of Realtors.

A reading of 100 points is considered healthy, but more buyers are canceling their contracts at the last minute, making that benchmark less reliable.

And separately, the Institute for Supply Management-Chicago reported Thursday that its business barometer was nearly the same in December, at 62.5, as the seven-month high of 62.6 it hit in November. The report said prices paid rebounded and order backlogs expanded. A reading of above 50 indicates that the economy is growing, while under 50 is a sign that it is contracting.

Weekly applications for jobless benefits increased by 15,000, to a seasonally adjusted 381,000, after three weeks of declines, the Labor Department said.

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

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

While layoffs have fallen sharply since the recession ended, many companies have been slow to add jobs. Employers have added an average of 143,000 net jobs a month from September through November, almost double the average for the previous three months.

Next year is expected to be even better. A survey of 36 economists by The Associated Press this month found that they predicted the economy would generate an average of about 175,000 jobs a month in 2012.

More small businesses plan to hire than at any time in three years, a trade group said this month. And a separate survey found that more companies planned to add workers in the first quarter of next year than at any time since 2008.

In November, the unemployment rate fell to 8.6 percent from 9 percent. About half of that decline was the result of many unemployed giving up their search for work.

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