New Jobless Claims, Staff Cuts Increase

The number of U.S. workers filing new claims for state unemployment benefits rose last week and more companies announced job cut plans in June as the labor market continues to deteriorate.

Initial jobless claims rose by 7,000 to 399,000 in the week that ended Saturday, the Labor Department said. The number of people collecting unemployment benefits rose to 3.03 million during the week ended June 23, the most since November 1992.

Businesses announced plans last month to eliminate 124,852 jobs, a 56% increase from May, according to employment firm Challenger, Gray & Christmas.

The number of job cuts planned in the first six months of the year is 3 1/2 times more than that of the same period last year as companies trim work forces to help sagging profits.