Rising U.S. Layoffs Hint At Ebbing Labor Market Momentum
The number of Americans filing for unemployment benefits rose more than expected last week, suggesting some loss of momentum in the labor market amid a sharp economic slowdown and stock market selloff.
Signs of creeping employment weakness were also flagged by another report on Thursday showing a 218 percent jump in announced job cuts by U.S.-based employers in January. The planned layoffs were concentrated in the energy and retail sectors.
"The future is somewhat darker ... the labor market may be past its peak for this cycle. It looks like the labor market has scaled back its rapid advance last month," said Chris Rupkey, chief economist at MUFG Union Bank in New York.
Initial claims for state unemployment benefits increased 8,000 to a seasonally adjusted 285,000 for the week ended Jan. 30, the Labor Department said. Claims remained below 300,000, a level associated with strong labor market conditions, for a 48th straight week - that is the longest run since the early 1970s.
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http://www.reuters.com/article/us-usa-economy-idUSKCN0VD1S8