Jun 11, 2009

New jobless claims drop to 601K; retail sales riseBy Christopher S. RugaberBoston.com

Washington, DC—The number of newly laid-off Americans filing jobless claims fell more than expected last week and retail sales grew in May for the first time in three months. But a rise in the number of people continuing to receive jobless aid signaled that an economic recovery is still far off.

The Labor Department said Thursday that initial claims for unemployment benefits fell last week by 24,000 to a seasonally adjusted 601,000. That’s below analysts’ estimates of 615,000.

Still, the number of people claiming benefits for more than a week rose by 59,000 to more than 6.8 million, the highest on records dating to 1967. The department also revised last week’s data on continuing claims, replacing what had been a drop of 15,000 with an increase of 6,000.

That means continuing claims have set records for 19 straight weeks. The data lag initial claims by a week.

Retail sales rose for the first time in three months in May, as a rebound in demand at auto dealerships and gas stations helped offset weakness at department stores. The Commerce Department said retail sales increased by 0.5 percent last month, in line with economists’ expectations. It was the largest increase since sales rose 1.7 percent in January following six straight declines.

Excluding autos, retail sales also grew 0.5 percent in May, better than the 0.2 percent gain that economists had expected.

Consumers may be spending a bit more and layoffs may be slowing, but companies are reluctant to hire amid the longest recession since World War II. That makes it harder for the unemployed to find work.

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