The labor market took a slight hit as jobless claims grew by 16,000 applications to a total of 360,000 filings, the Department of Labor reports.

This is compared to last week’s revised figure of 344,000, which showed added growth in construction payrolls and increased home sales.

Meanwhile, the 4-week moving average ticked up to 351,750, an increase of 6,000 from 345,750 a week prior. 

But despite the heavy increase, analysts with Econoday note that the week is overloaded with special factors.

"First is the holiday shortened week followed by summer retooling in the auto sector, which is now getting underway, as well as the end of the school year," Econoday said.

They added, "Not just this week but all the weeks in July will be hard to read for initial claims, the result largely of the auto sector. Still, today's jump in initial claims isn't going to give any boost to the jobs outlook."