The 406,000 initial benefits claims during the week was an increase of 34,000 from the previous week's revised figure of 372,000 initial claims, the department reported.

The four-week average gained 4,500 to 378,000, the report said.

The U.S. unemployment rate remained unchanged at 5.5 percent.

The report said the biggest increases in claims for the week ending July 12 were reported by coastal states. New York had 13,909 additional claims, California added 9,416 and North Carolina 9,344 claims during the week, the report said.

The biggest decreases for the week were reported by Michigan with a decline of 4,571 claims, New Jersey California, declining by 1,835, and Kentucky with 1,724 fewer claims than the week of July 12.