Claims for first-time unemployment benefits rose by 17,000

First-time claims for unemployment benefits increased by 17,000 last week after a month of declines following a jump caused by Hurricane Sandy. 

Applications for benefits rose to 361,000, within the range that reflects a growing labor market, but higher than the revised 344,000 posted a week ago, the Labor Department reported on Thursday. 

The four-week moving average, which is a better indicator as to where the labor market is headed, fell by 13,750 to 367,750, the best showing since Sandy slammed into the East Coast on Oct. 29. 

Businesses have said they are holding back on hiring and investment while Congress attempts to solve the "fiscal cliff" issues of scheduled tax hikes and spending cuts expected to go into effect in January if lawmakers and the White House can't forge a deal. 

The economy added 146,000 jobs in November and the unemployment rate dropped to 7.7 percent from 7.9 percent, mainly because job seekers stopped looking for work. 

Some economists have said the figure indicates that businesses aren't laying off workers because of all the looming tax and spending issues. 

House and Senate Democrats are pressing for an extension of federal unemployment benefits, which are set to expire on Dec. 29. A expiration would leave more than 2.1 million long-term unemployed workers without their weekly check. 

The White House is urging congressional leaders to include a one-year extension into a fiscal cliff deal, which now isn't expected to be completed until after Christmas. 

A separate report on Thursday showed that the economy grew at a faster rate than estimated, 3.1 percent.