Initial jobless benefit claims in the US fell by less than expected last week, according to official data.

The Labor Department revealed first-time claims for unemployment insurance declined by 29,000 to a seasonally-adjusted 496,000 in the week ending February 27th, following two consecutive weeks of increases.

This fall was slightly more than the 470,000 expected by analysts before the data was unveiled.

In addition, the four-week average of initial claims, which is a more accurate gauge of the trend, also dropped by 3,500 cases to 470,750.

The largest increases in first-time insurance declarations were recorded in New Jersey, Connecticut, Missouri, Maryland and Massachusetts.

The greatest declines were found in California, North Carolina, Florida, Michigan and Ohio, according to the Labor Department.

Meanwhile, the number of people receiving regular state unemployment insurance decreased by 134,000 to 4.5 million.

Official data revealed that the US unemployment rate remained stable at 9.7 per cent in February, with the economy losing 36,000 jobs.