US initial jobless claims rose by 12,000 in the week ended July 1 to a total of 248,000, the US Department of Labor reported today. The previous week’s level was revised downward by 3,000.

Economists polled by Reuters had forecast 245,000 claims for the latest week. Minnesota recently extended eligibility for state unemployment benefits to tens of thousands of hourly school workers during the summer break, which contributed to the rise in filings, Reuters reported.

Meanwhile, the four-week moving average of initial claims fell by 3,500 to a level of 253,250.