Unemployment, Good News | featured news

The number of U.S. workers filing new claims for jobless insurance hit a nine-month low last week and retailers reported their first monthly sales gain in over a year on Thursday, easing fears that recovery from recession would be unsustainable.

Jobless Americans in high-unemployment states would see their benefits extended for another 13 weeks under legislation to be considered by Congress next Wednesday.

Even as the July numbers came in better than expected, the job market remains shaky in the months ahead.

The government says the number of newly-laid off workers seeking unemployment insurance fell last week, fresh evidence that layoffs are easing.

The total number of people on the unemployment insurance rolls has dropped for the first time since early January, while first-time claims for benefits rose slightly.

The U.S. unemployment rate was the highest in 26 years, the government said on Friday, but the loss of 345,000 jobs in May, fewer than expected, was seen as a sign that the job market was no longer in free fall.

The economy lost 539,000 jobs in April, the government reported on Friday, a sign that the relentless pace of job losses was starting to level off.

Stocks crawled out from under a deep early drop after an encouraging report on manufacturing offset grim employment figures.