Nov. 23 (Bloomberg) -- The number of Americans filing first- time claims for unemployment benefits rose more than forecast last week, suggesting the Veteran's Day holiday may have helped push filings down to a four-month low a week earlier.

Initial jobless claims rose by 30,000 in the week that ended Nov. 19 to 335,000, from the prior week's 305,000 that was the lowest since July 16, the Labor Department said today in Washington. Weekly claims have averaged 323,000 this month, compared with 351,000 in October.

Government offices were closed for the Veteran's Day holiday on Nov. 11 and prevented fired workers in states such as California from filing claims. The drop in the average number of claims this month is evidence businesses are firing fewer workers. A decline in firings often coincides with increased hiring, suggesting rising wages will give consumers the means to keep spending, economists said.

``The underlying trend in the job market is slowly improving over time,'' said Michael Gregory, a senior economist at BMO Nesbitt Burns in Toronto, before the report. ``There is going to be enough income growth and enough wage growth that consumer spending will make it over the hump of the coming increase in heating costs.''

Claims due to Hurricanes Katrina and Rita totaled 10,000, while Hurricane Wilma added 11,000 last week. Total hurricane- related claims have reached 582,400, a spokesman said.

For the week ended Nov. 12, claims filed in California dropped 3,781 with the decrease due to a holiday-shortened workweek, according to the state's labor offices.

Forecast

Claims were forecast to rise to 312,000 for the week, according to the median estimate of 38 economists in a Bloomberg News survey. Estimates ranged from 298,000 to 321,000 claims for the week. The report was issued a day earlier than customary because government offices are closed tomorrow for the Thanksgiving holiday.

An average of 324,000 people a week filed claims for unemployment benefits through August, before Katrina devastated the Gulf Coast. An average of 343,000 a week were filed last year.

Claims tend to fall as payrolls rise and together the two measures provide a good indication of how the labor market is faring. A report next week on November payrolls is expected to show the economy added 205,000, the most in four months, according to the median estimate in a preliminary Bloomberg News survey of economists.

Payrolls rose by 56,000 last month, less than half the median economist forecast, after dropping by 8,000 in September.

Four-Week Average

The four-week moving average of claims, a less-volatile indicator, rose to 323,250 from 322,000, today's report showed.

The number of people continuing to collect state jobless benefits rose to 2.824 million in the week that ended Nov. 12 from 2.765 million a week earlier.

The unemployment rate among people eligible for benefits, which tends to track the U.S. jobless rate, held at 2.2 percent in the week ended Nov. 12. The Labor Department also said five states and territories reported an increase in new claims, while 48 reported a decrease. These data are reported with a one-week lag.

With the average price of a gallon of gasoline at $2.34 this month compared with $2.02 this time last year and the government projecting heating bills will be as much as $500 higher this year than last, Americans are going to depend on rising wages to keep spending, economists said.

Spending

``The income generated by traditional sources, the labor market, is probably doing just fine and is providing a nice base for future spending,'' said Jonathan Basile, an economist at Credit Suisse First Boston in New York.

So far, consumers haven't let up. Starbucks Corp., the largest U.S. chain of coffee shops, said last week that fourth- quarter profit rose 21 percent on sales of espresso drinks and new breakfast and lunch offerings. Chief Executive Jim Donald added 570 stores, the most ever, as the company expanded in states such as California and Texas.

``We think that the number of stores that we can continue to put up will continue to grow,'' Donald said in a Nov. 17 interview. ``I don't see'' any sign consumers are turning cautious, he said.

The National Retail Federation yesterday raised its holiday sales forecast to 6 percent from an estimate of 5 percent two months ago, citing strong October gains and the decline in gasoline prices.

Not all businesses are doing as well. General Motors Corp. and Ford Motor Co., the largest U.S. automakers, announced plans within days of each other to reduce payrolls. General Motors said yesterday it would close 12 North American plants and cut 30,000 jobs, 20 percent more than proposed earlier this year, in a move to lower expenses. Ford said last week it would eliminate 4,000 salaried jobs in North America as part of a restructuring plan to be announced in January.

To contact the reporter on this story: Carlos Torres in Washington ctorres2@bloomberg.net.

Last Updated: November 23, 2005 08:30 EST