WASHINGTON (AP) — The tally of newly laid-off workers requesting unemployment benefits rose last week for the first time in five weeks as the job market remained sluggish.
Initial claims for jobless aid rose by 12,000 to a seasonally adjusted 465,000, the Labor Department said Thursday. Many economists expected a flat reading or small drop.
The rise suggests that jobs remain scarce and some companies are still cutting workers amid weak economic growth. Initial claims have fallen from a recent spike above a half-million last month. But they have been stuck above 450,000 for most of this year.
"What's becoming increasing clear is that this isn't a normal recovery," said Dan Greenhaus, chief economic strategist at Miller Tabak. "There's little we can do to create jobs until demand returns, and demand isn't returning."
Separately, the National Association of Realtors said sales of previously occupied homes rose 7.6 percent in August from July, to a seasonally adjusted annual rate of 4.13 million. Still, it was the second-worst month for sales in more than a decade. July was the worst month for sales in 15 years, a factor unchanged by a slightly upward revision.
And the Conference Board, a private research group, said its index of leading economic indicators rose modestly in August, more evidence that the economy will keep growing at a slow pace through the fall.
Jobless claims typically fall below 400,000 when hiring is robust and the economy is growing.
The four-week average of claims, a less volatile measure, declined by 3,250 to 463,250. That's the lowest level since the end of July, but down by only 4,000 since January.
Initial claims, while volatile, are considered a real-time snapshot of the job market. The weekly claims figures are considered a measure of the pace of layoffs and an indication of companies' willingness to hire.
New requests for jobless benefits have fallen sharply since June 2009, the month the recession ended. They topped 600,000 at the end of that month, but most of the decline took place last year.
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