Business Week

Jobs picture dims as unemployment claims rise

The economy is looking bleaker as new applications for jobless benefits rose last week to the highest level in almost six months. — It’s a sign that hiring remains weak and employers may be going back to cutting their staffs. Analysts say the increase suggests companies won’t be adding enough workers in August to lower the 9.5 percent unemployment rate… Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the highest since late February.

The report “represents a very adverse turn in the labor market, threatening income growth and consumer spending,” Pierre Ellis, an economist at Decision Economics, wrote in a note to clients.

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