WASHINGTON. Aug 7: The number of Americans filling new claims for unemployment benefits edged higher last week, the government said yesterday, reports Reuters.

The Labour Department said initial claims for state jobless benefits rose to 307.000 in the week ended Aug 1. from a revised 301.000 the prior week.

But the new figure was well below analysts' forecasts for a rise to 314.000 pointing to continued strength in the job market.

The four-week average of new claims, which smooths out weekly fluctuations in the data, fell to 315,500 from a revised 337,250 the previous week.

Just one state. California, reported an increase in claims of 1,000 or more in the week ended July 25.

Fourteen states and one territory reported a drop in claims of 1.000 or more in the week. The steepest was 8.203 in Tennsessee. followed by 6.044 in Alabama.

Labour gave no reason for the drop.

Analysts said seasonal adjustments meant to compensate for planned auto plant summer retooling shutdowns typically cause claims to dip in late July and rise in early August.

Financial markets, waiting for Friday's release of July's unemployment report, showed little reaction to the report, analysts expect the July unemployment rate to come in at 4.5 per cent, unchanged from June.