WASHINGTON — 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 cutting their staffs again. Analysts say the increase suggests companies won’t be adding enough workers in August to lower the 9.5 percent unemployment rate.
First-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor Department said Thursday.
That’s the highest total since February. Analysts had expected claims to fall.
Initial claims have risen in three of the past 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.
Economists closely watch weekly claims, which are considered a gauge of the pace of layoffs and an indication of employers’ willingness to hire.
The government’s July jobs report, released Friday, showed the economy lost a net total of 131,000 jobs last month. Excluding the impact of the elimination of 143,000 temporary census jobs, the economy added 12,000 positions, as layoffs by state and local governments almost canceled out weak hiring by businesses.
