The U.S. Department of Labor released data today on the number of individuals who filed for unemployment insurance for the first time during the past week, which showed more Americans than forecast filed for claims, signalling a still weak labor market.
People filing for jobless benefits rose to 408,000 in the week ended August 13, which was 9,000 more than the prior figure and the highest increase in the month. Economists had predicted a rise in just 400,000 claims.
A lot of people are still getting laid off their jobs as the uncertainty in the economic outlook is continuing to worry hiring managers at many U.S. companies across the country who have to try and limit spending by cutting staff.
Due to job uncertainty consumer households are limiting their spending, which in turn lowers manufacturing and slows down the economy creating a vicious cycle and paving the way for a long economic recovery in the U.S.