Jobless claims up to high level
Applications rise by 38,000
Associated Press
Apr. 4, 2003 12:00 AM
WASHINGTON - The number of American workers filing new claims for unemployment benefits climbed last week to the highest point in nearly a year as businesses trimmed jobs in the muddled wartime economic climate.
The Labor Department reported Thursday that new applications for jobless benefits jumped by a seasonally adjusted 38,000 to 445,000 for the week ending Saturday, a level last reached in the week ending April 13, 2002.
"It is the pall of the Iraqi war, higher energy prices and lower stock prices just weighing on the willingness of companies to maintain jobs," said Mark Zandi, chief economist at Economy .com. "The uncertainty is so high they just can't think about expanding their businesses at this point."
A second report offered more unsettling news: Activity in the service sector, normally the engine of job creation in the United States, contracted in March, ending 13 months of growth.
The Tempe-based Institute for Supply Management reported that its non-manufacturing index sank to 47.9 in March from a reading of 53.9 in February. An index reading below 50 means activity contracted; a reading above 50 signifies growth.
"It is clear that the war is having a negative impact on most sectors of the economy," said Maury Harris, UBS Warburg chief economist.
The institute reported this week that manufacturing activity shrank in March, raising fears the economy may be headed for a new recession.
Jobless claims up to high level Applications rise by 38,000
Associated Press Apr. 4, 2003 12:00 AM
WASHINGTON - The number of American workers filing new claims for unemployment benefits climbed last week to the highest point in nearly a year as businesses trimmed jobs in the muddled wartime economic climate.
The Labor Department reported Thursday that new applications for jobless benefits jumped by a seasonally adjusted 38,000 to 445,000 for the week ending Saturday, a level last reached in the week ending April 13, 2002.
"It is the pall of the Iraqi war, higher energy prices and lower stock prices just weighing on the willingness of companies to maintain jobs," said Mark Zandi, chief economist at Economy .com. "The uncertainty is so high they just can't think about expanding their businesses at this point."
A second report offered more unsettling news: Activity in the service sector, normally the engine of job creation in the United States, contracted in March, ending 13 months of growth.
The Tempe-based Institute for Supply Management reported that its non-manufacturing index sank to 47.9 in March from a reading of 53.9 in February. An index reading below 50 means activity contracted; a reading above 50 signifies growth.
"It is clear that the war is having a negative impact on most sectors of the economy," said Maury Harris, UBS Warburg chief economist.
The institute reported this week that manufacturing activity shrank in March, raising fears the economy may be headed for a new recession.