By Sarah Chaney Cambon

Worker filings for jobless benefits are hovering near the pandemic's lowest levels, adding to evidence of recent economic improvement.

Jobless claims rose last week to 770,000 -- still elevated above the pre-pandemic peak of 695,000 -- but have declined since January. The four-week moving average, which smooths out weekly volatility, fell last week to about 746,000, near November's pandemic low.

An increase in Texas accounted for about half of last week's overall rise in jobless claims, which could reflect delayed effects from last month's winter storm, some economists said.

More broadly, declining jobless claims are one sign of economic improvement. U.S. employers added 379,000 jobs in February, and the unemployment rate ticked down to 6.2%. The U.S. manufacturing industry has exhibited steady signs of expansion. JPMorgan Chase & Co.'s tracker of credit- and debit-card transactions showed consumer spending climbed in early March.

Economists expect widespread distribution of vaccines and a fresh round of government stimulus to fuel growth in the first half of this year.

"The economy is on a very solid path," said Jim Baird, chief investment officer at Plante Moran Financial Advisors. "Strong consumer spending should be the primary driver not only of growth in the economy, but improvement in labor-market conditions in the coming months."

Consumer spending on in-person activities, such as travel, entertainment and dining out, will likely trigger hiring in services sectors that were hard hit by the pandemic. Early evidence signals this dynamic is already at play. In February, leisure and hospitality added 355,000 jobs. Employment in the sector is still down 20% compared with pre-pandemic levels, suggesting the recovery will take time. Unemployment claims for the past year have remained above the highest level recorded during any previous recession.

Table 301 Restaurant Group -- which includes a juice bar, restaurants and a catering business in Greenville, S.C. -- implemented a hiring freeze after initial reopenings in mid-2020.

In late February, the company needed to begin seeking workers as demand fired up, said Carl Sobocinski, the restaurant group's president. Business is heavily dependent on travel to downtown Greenville, which has been picking up as people get vaccinated, he said.

"The consumers are coming back out, the restaurant seats are filling up and it will be an upward trajectory between now and the end of the year, " said Mr. Sobocinski.

Millions of laid-off workers continue to receive unemployment aid. Total continuing claims, which gives a good approximation of the number of people receiving benefits, fell to 18.2 million in the week ended Feb. 27 from 20.1 million a week earlier. The number of individuals collecting regular state benefits declined. Fewer people also received aid through two federal pandemic programs, though those figures have been particularly volatile throughout the pandemic.

Some state claims numbers continue to be plagued by attempted fraud, a problem throughout the pandemic. In recent months, thousands of Americans have received 1099-G tax forms, surprising them with the news they are victims of unemployment-insurance fraud.

President Biden recently signed a $1.9 trillion relief package into law. The stimulus package extends supplemental benefits originally set to expire March 14. Workers claiming state or federal jobless benefits can now receive an additional $300 a week through early September.

Economists expect the aid package to help propel the U.S. economy to its fastest annual growth in nearly four decades.

The Organization for Economic Cooperation and Development separately forecast that the U.S. economy would expand by 6.5% this year, in part because of trillions of dollars in government stimulus.

"You're looking at people who are looking to get out," said Mr. Baird. "They're looking to dine out, they're looking to travel for recreational purposes. That's that next wave that we see coming."

Write to Sarah Chaney Cambon at sarah.chaney@wsj.com

(END) Dow Jones Newswires

03-18-21 1113ET