Economy, Jobless | featured news

The number of U.S. workers filing new applications for unemployment insurance fell sharply last week, while the number of those on continued benefits was the lowest since December 2008.

LaShonda Durden had just given birth to her second child. She was two weeks back from maternity leave when her supervisor called her into her office.

The social safety net was built for short-term gaps between jobs, but work may be scarce for years, even as the American economy shows signs of a rebound.

On the recession's front lines, governors are struggling to chart the road ahead for states staggered by unrelenting joblessness and cut-to-the-bone budgets even as Washington reports signs of economic growth.

"The worst probably is yet to come," warned Gov. Jim Douglas, R-Vt., chairman of the National Governors Association, at the group's meeting Saturday. He called the situation "fairly poor" in most states, adding that it "doesn't look too good."

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 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.

Economists expect the joblessness that has weighed down the nation's economic recovery will start to slowly abate in 2010, but they predict consumers will continue to keep a tight rein on spending, according to a new survey.

The U.S. economic recovery will be weaker than after previous deep recessions, and the high jobless rate will decline only slowly, the OECD said on Thursday.

President Barack Obama is set to sign a $24 billion economic stimulus bill providing tax incentives to prospective homebuyers and extending unemployment benefits to the longtime jobless who have been left behind as the economy veers toward recovery....

The United States economy shed 190,000 jobs in October, the government reported, and economists do not foresee relief until well into next year.