THE number filing first time claims for state unemployment benefits in the US rose by 5,000 last week, the US Labour Department said yesterday.

New filings rose to 321,000 in the week to August 10th from 316,000 the previous week, matching Wall Street forecasts.

Despite the rise in initial claims, the four week moving average, which levels out the more volatile weekly figures, fell to its lowest level in seven years. The average is considered a more accurate measurement of employment trends.

The four week average fell to 313,000 in the week to August 10th down from the previous week's 324,500. It was the lowest since an average of 311,500 for the week to May 20th, 1989.

The total for those receiving ongoing benefits fell 63,000 to 2.471 million in the week to August 3rd, the latest period for which those figures are available. That compared with 2.534 million the previous week.

The department said five states reported declines of more than 1,000 initial claims on an unadjusted basis in the week to August 3rd, the latest period for which the data are available.

They were North Carolina, with 2,818 fewer claims Texas, with 1,605 Georgia, with 1,209 Alabama, with 1,084 and Ohio, with 1,062.

Texas and Alabama had fewer layoffs in the electrical industry, while Georgia had fewer layoffs in the clothing industry. North Carolina and Ohio had no comment.

The department said two states reported increases in initial claims exceeding 1,000, unadjusted, in the August 3rd week.

They were California, with 1,905 more claims and Missouri, with 1,784. Missouri cited layoffs in the transportation industry. California had no comment.