Applications for US unemployment benefits dropped 15,000 to a seasonally adjusted 358,000 last week, though the figure was distorted for the second straight week by California's efforts to clear backlogged claims.
U.S. employers added 162,000 jobs in July, a modest increase and the fewest since March. The gain was still enough to help lower the unemployment rate to a 4 1/2-year low of 7.4 percent, a hopeful sign in an otherwise lackluster report.
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