Weekly applications for unemployment benefits leapt 38,000 to a seasonally adjusted 368,000 but still signal modest job gains, according to the Labor Department.

The increase comes after applications plummeted in the previous two weeks to five-year lows. The weekly applications are a proxy for layoffs. While job cuts have fallen, hiring has yet to accelerate.

On Friday the government is scheduled to issue its January jobs report. Analysts forecast that it will show employers added 155,000 jobs, the same as in December.

The state data are for the week ended Jan. 19, one week behind the national data.

The state of Pennsylvania had the largest gains with 12,565 applications, due to fewer layoffs in construction, professional and scientific services and restaurants. Texas was second with Texas 10,448 and North Carolina with 9,287 due to fewer layoffs in textiles, construction and transportation