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The number of newly laid-off workers seeking unemployment benefits fell for the third straight week, evidence that layoffs are continuing to ease in the earliest stages of an economic recovery.
The U.S. Federal Reserve is expected to take note of an improving economy at the close of a meeting on Wednesday, while cautioning that high unemployment puts the recovery at risk.
Jobless Americans in high-unemployment states would see their benefits extended for another 13 weeks under legislation to be considered by Congress next Wednesday.
President Obama is cautioning job creation could move slowly as the nation recovers from an economic recession. He told CNN's "State of the Union" signs point to recovery, although creation of enough new jobs could be delayed until next year.
The number of U.S. workers filing new claims for jobless benefits unexpectedly rose last week, a government report showed on Thursday, as companies continued to cut payrolls amid uncertainty over the economic outlook.
Retail sales unexpectedly fell 0.1% in July despite the debut of the government's "cash for clunkers" program. Separately, weekly jobless claims rose a bit.