Summary Box: Spike in unemployment claims points to weakening job market, faltering recovery

Summary Box: Layoff spike feeds fear of slowdown

MORE LAYOFFS: Employers are cutting jobs again as the economic recovery slows. New applications for unemployment benefits rose to 500,000 last week, the third straight increase and highest level in nine months. Jobless claims usually rise as layoffs increase.

RECOVERY SLOWS: The report sent stocks sharply lower and moved some economists to reduce their economic growth forecasts for the second half of the year.

LITTLE HIRING: With hiring still slow, rising layoffs could mean the economy will see a net reduction in private-sector jobs this month, the first monthly loss this year.