Thursday, February 25, 2010

Jobless claims rise in weak recovery

JOB PICTURE STILL BLEAK: New claims for jobless benefits rose sharply last week, the Labor Department said Thursday. Most of the rise resulted from state agencies processing a backlog of claims left over from two weeks ago when snowstorms closed government offices.

IMPROVEMENT STALLS: Still, a steady drop in claims in the second half of last year has stalled, a sign layoffs are no longer declining. More layoffs could weaken consumer spending and slow the recovery.

WEAK ECONOMY: Other recent economic reports have also been disappointing, evidence that economic growth may weaken later this year.

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