U.S. jobless claims, including federal filings, rise third straight week in sign of stalling labor market

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A gradual improvement in the labor market this summer seems to have stalled. Last week, 884,000 people applied for unemployment benefits through state offices and another 838,916 people applied through a federal program.

The numbers: The number of Americans who applied for unemployment benefits through state and federal programs rose in early September for the third week in a row, signaling that a gradual improvement in the labor market during the summer has stalled.

That put the number of actual or unadjusted new claims at 1.69 million, compared to 1.59 million in the prior week. Federal filings have risen four weeks in a row. Now the two sets of numbers are more closely aligned. And what they both show is that the decline in new claims appears to have stalled for now. For a more complete explanation, read about the big change in jobless-claims data reporting.

More ominously, the increase could reflect a fresh wave of layoffs in hard-hit businesses such as airlines and hotels. Major companies such as American Airlines AAL, +1.37% and MGM MGM, +3.54% said earlier this month they would cut more jobs permanently because demand is still in a slump and federal aid has dried up.

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The unemployed have started running out of unemployment benefits. This makes it appear employment is increasing. I never hear anyone say that.

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