Summary Box: Jobs picture darkens as unemployment claims rise, highest level since February

Summary Box: Job picture dims, jobless claims rise

CLAIMS RISE: The employment picture is looking worse as new applications for unemployment insurance rose last week to their highest level since February.

LAYOFFS RESUME: Initial claims have risen three times in the past four weeks, suggesting that companies are going back to cutting jobs. State and local government layoffs are likely also contributing to the increases.

WEAK RECOVERY: Without more jobs, consumers will likely spend less and save more, slowing economic growth. The claims report follows other data this week that suggest the pace of the recovery is slowing considerably.