WASHINGTON — Despite persistent layoffs, the economy seems to be faring better than it was at the start of the year.
The Labor Department said Thursday that new jobless claims jumped unexpectedly last week. And the number of people continuing to receive unemployment aid rose more than expected.
The figures indicate that jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.
A revised reading on gross domestic product said the economy posted a 5.5 percent annualized decline from January through March. That was slightly better than the 5.7 percent estimate made a month ago. Economists generally think the economy is shrinking at a slower pace — about 2 percent — in the current quarter.
The main forces behind the small upgrade in the first quarter: Businesses didn’t cut stockpiles of goods as much, and imports dropped more than previously estimated.
Initial claims for jobless benefits rose last week by 15,000 to a seasonally adjusted 627,000. Economists had expected a drop to 600,000.
Most economists still expect initial unemployment insurance claims to decline slowly in coming months as the recession bottoms out.
by the associated press
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