WASHINGTON – More people sought U.S. unemployment benefits last week, though the holidays likely distorted the data for the second straight week.

The Labor Department said Thursday that weekly applications rose by 10,000 to a seasonally adjusted 372,000 in the week ended Dec. 29. The previous week’s total was revised higher.

Many state unemployment offices were closed this week for the New Year’s holiday and did not submit complete data for last week. As a result, the department relied on estimates for nine states. Two weeks ago, the department estimated 19 states because of Christmas closings.

In a typical week, the government estimates only one or two states.

The government will release the December’s jobs report Friday. Economists forecast it will show employers added about 150,000 jobs last month, barely enough to lower the unemployment rate.

Weekly applications are a proxy for layoffs. They have mostly fluctuated this year between 360,000 and 390,000. At the same time, employers have added an average of 151,000 jobs a month in the first 11 months of 2012.

Unemployment remains high, and companies are reluctant to increase hiring. The unemployment rate fell to 7.7 per cent in November from 7.9 per cent in October, mostly because many of the unemployed stopped looking for jobs. The government counts people as unemployed only if they are actively searching for work.

There are signs the economy is improving. The once-battered housing market is recovering, which should lead to more construction jobs in the coming months. Companies ordered more long-lasting manufactured goods in November, a sign they are investing more in equipment and software. And Americans spent more in November. Consumer spending drives nearly 70 per cent of economic growth.