New US jobless claims rise more than expected
New jobless claims rise more than expected to 551,000; spending jumps in Aug.
but incomes lag
On Thursday October 1, 2009
WASHINGTON (AP) -- First-time claims for jobless benefits increased more than
expected last week, a sign employers are reluctant to hire and the job market
remains weak
And while consumer spending jumped by the most in nearly eight years in August
due partly to the government's Cash for Clunkers program, economists worry
whether that rebound can be sustained with U.S. households facing rising
unemployment, tight credit conditions and other obstacles.
The Labor Department said Thursday that initial claims for unemployment
insurance rose to a seasonally adjusted 551,000 from 534,000 in the previous
week. Wall Street economists expected an increase of 5,000, according to a
survey by Thomson Reuters.
The increase comes after three weeks of declines. Weekly claims have been
trending down since the spring, but the decline has been painfully slow. The
four-week average, which smooths out fluctuations, dropped to 548,000, about
110,000 below its peak in early April.
