Initial unemployment claims totaled 472,000 last week, an increase of 12,000 that shows job losses remain elevated in spite of a growing U.S. economy, Bloomberg reported.

Economists surveyed by Bloomberg had predicted that applications for jobless benefits would fall to 450,000 from an initially reported 456,000 for the prior week. That was the median of 42 projections in a Bloomberg survey, which garnered estimates ranging from 440,000 to 475,000.

Figures released by the Labor Department show the number of people receiving unemployment insurance increased, and those getting extensions of jobless benefits fell.

“The labor market is not improving,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “If you really are going to have a sustainable recovery, you need the labor market to improve.”

A Labor Department spokesman said states reporting higher initial claims last week were attributing the increases to cutbacks in the manufacturing, construction and educational services industries.

A decrease in claims was reported by 38 states and territories; 15 reported an increase.

CNNMoney.com reported that the stock market was down early today as the Dow Jones industrial average lost 17 points, or 0.2 percent, after the worse-than-expected unemployment news.

Separate Labor Department figures showed that consumer prices fell for a second consecutive month in May and the Consumer Price Index declined 0.2 percent, an indication that larger job gains are needed to spur consumer spending.