Tight Job Market Eases Amid Slowdown

The number of Americans signing up for first-time jobless benefits rose last week to its highest level in more than 2 1/2 years, and the number who have claimed more than a week of benefits is hovering at levels not seen in four years. The weekly Labor Department data, together with a separate industry survey, showed the once drum-tight U.S. job market continuing to loosen amid a sharp slowdown in economic growth. The reports came a day before the department issues its report on March employment, a key factor in the Federal Reserve’s calculations as it weighs its next move on interest rates. Initial claims for state unemployment insurance benefits rose to 383,000 in the week ended March 31 from a revised 365,000 in the prior week. It was the highest level since 384,000 in the July 4, 1998, week, the Labor Department said. A separate survey from international outplacement firm Challenger, Gray & Christmas showed U.S. companies were cutting jobs last month at nearly triple the rate of a year ago. Challenger Gray said U.S. firms laid off 162,867 people in March, up from 101,731 in February and compared with 55,783 in March 2000, when the economy was still roaring ahead.