U.S. jobless claims up last week

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Jul. 5, 2001. 10:22 AM
Shows effect of slumping production ahead of employment report
WASHINGTON (AP) - The number of
Americans filing new claims for state
unemployment insurance rose last week after
falling for three weeks in a row, providing
fresh evidence that the struggling economy is
taking a toll on workers.

The U.S. Labour Department reported today
that new applications for jobless benefits for
the work week ending June 30 increased by a
seasonally adjusted 7,000 claims to 399,000,
the highest point since the middle of June.

The week before, claims fell by 12,000.

The Federal Reserve has cut interest rates six
times this year to boost economic growth. The
most recent cut, by a quarter-point, came last
week. Each of the other five were by

The more stable four-week moving average of
jobless claims, which smoothes out
week-to-week fluctuations, declined last week
to 407,500, the lowest level since the end of May.

The economic slowdown has been hard on companies struggling with
slumping demand. To cope, they have sharply cut production and laid off

Many economists are predicting U.S. unemployment rate will rise to 4.6 per
cent in June from 4.4 per cent in May, and that businesses will eliminate
another 25,000 jobs.

The government will release employment information on Friday.
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2001-7-5 -04:00
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