Unemployment, Economic Recovery | featured news

Home sales rose sharply last month and claims for jobless benefits fell last week. The two reports Thursday sketched a picture of a modestly improving economy.

Fed chief Bernanke expressed confidence to Congress that the unfolding economic recovery will have staying power, but not fast enough to relieve high unemployment quickly.

Economists had expected the snowstorms to have a bigger impact, but job losses were surprisingly mild in February as employers cut 36,000 jobs.

The Federal Reserve expects unemployment will stay high over the next two years because recession-scarred Americans are likely to stay cautious, making for only a moderate-paced economic recovery.

The number of newly laid-off workers seeking unemployment benefits fell more than expected last week to the lowest total in a month, a sign the job market may be improving.

The government said the economy shed 85,000 jobs last month, surprising forecasters, while the unemployment rate held steady at 10 percent.

Analysts had expected an increase. The number of newly laid-off workers filing claims for unemployment benefits dropped unexpectedly last week, the Labor Department reported today, a sign the job market is healing as the economy slowly recovers.

California's unemployment rate fell in November, another sign that a recovery is underway, even as the state shed jobs from its payrolls.

The state's unemployment rate slid to 12.3%, the Bureau of Labor Statistics reported this morning, down from 12.5% the month before. It is one of 36 states that saw unemployment rates decline in November.

Focused on keeping the recovery going and driving down double-digit unemployment, the Federal Reserve is poised to leave interest rates at a record low.

The Labor Department said initial claims for unemployment insurance rose by 17,000 to a seasonally adjusted 474,000. That was above analysts' expectations of 460,000.