The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, according to a report released by the Labor Department. Initial claims for state unemployment benefits increased by 20,000 to a seasonally adjusted 294,000 for the week ended January 3rd.

Economists had forecast claims falling to 280,000 for the latest week. The prior week’s claims were revised up by 1,000 to 274,000.

The four-week moving average of claims, considered a more reliable measure as it irons out week-to-week volatility, rose 7,750 to 291,000.

Despite the unexpected increase, economists generally view the labor market as continuing to strengthen. Many believe the rise in claims is a temporary blip and not indicative of a broader slowdown.

The report also showed the number of people still receiving benefits after an initial week of aid increased 69,000 to 2.48 million in the week ended December 27. The four-week moving average of continuing claims fell 14,250 to 2.42 million.