The Labor Department said today that 266,000 Americans filed new claims for jobless benefits for the week ending March 18, up by 4,000 from the previous week. That was the highest since March 4, when claims were at 281,000.

The rise in last week's claims, which followed a sharp decline, was smaller than many analysts were expecting. They were predicting claims would rise to 270,000.

The more stable four-week moving average of claims, which smooths out week-to-week volatility, last week fell slightly to 271,000, the lowest level since Dec. 15, 1973, when such claims were at 256,750. The four-week moving average has been running below 300,000 since late October.

Economists consider claims below 300,000 an indication of a tight labor market, meaning employers are finding it difficult to find qualified workers.

That's good for workers, but it's troubling to economists. They worry that employers will recruit workers with big increases in wages and benefits, increased costs that companies could pass along to consumers in the form of sharply higher prices.

On Tuesday, the Federal Reserve raised interest rates for the fifth time since June 30 in an effort to slow the speeding economy and keep inflation under control. Many economists believe the Fed will boost rates again in May, given strong continuing economic growth.

In financial markets, prices of long-term government bonds were rising this morning, pushing down yields to levels last seen in August 1999. The yield on 30-year Treasurys dropped this morning to 5.91 percent from 5.96 percent late Tuesday.

Although the Fed has been steadily pushing up short-term interest rates, the central bank's fight against inflation has helped prop up long-term government securities. The government's plans to reduce the national debt by buying back bonds also has supported long-term Treasurys.

Initial jobless claims for the week ending March 11 plunged by 19,000 to an unrevised 262,000, the lowest level since 1973.

Today's report said that for the week ending March 11, 39 states and territories reported increases in jobless claims applications, while 13 reported decreases. The state data lag a week behind the national figures.

The state with the biggest increase was Tennessee, up 919. Officials did not give a reason for the rise.

Other states with increases were: Ohio, up 867; Texas, up 692; Arkansas, up 579; and Nevada, up 419.

The state with the biggest decrease in claims was New York, down 7,499. Officials did not comment on the decline.

Other states with decreases were: Michigan, down 3,017; California, down 2,983; Kansas, down 2,750; and Delaware, down 1,511.