Jobless Claims Stuck in a Rut

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By Trey Thoelcke Published
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New applications for unemployment benefits remained unchanged last week, the latest Labor Department data showed, suggesting little pickup in hiring in the United States.

Initial jobless claims remained at a seasonally adjusted 374,000 in the week ended Aug. 25. The claims from two weeks ago were revised up to 374,000 from an original reading of 372,000. Economists on average had expected claims would fall to 370,000.

The Labor Department also indicated that continuing claims, which reflect the numbers of people already receiving benefits, fell by 5,000 to a seasonally adjusted 3.32 million in the week ended Aug. 18.

Applications for unemployment benefits have lingered around 370,000 for the past five weeks, showing almost no improvement since falling to a four-year low in February. The slowdown in the U.S. economy clearly has prompted businesses to scale back hiring plans. The potential for sharp spending cuts and tax increases in the U.S. early next year, as well as the ongoing financial crisis in Europe, have added to uncertainty.

However, the Commerce Department said separately that consumer spending rose in July by the largest amount in five months, and that personal income also rose.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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