Jobless, Labor Department | featured news

In the wake of the controversial 7.8% unemployment rate reported by the U.S. Labor Department earlier this month, Gallup today said that its nonseasonally adjusted rate fell from 7.9% at the end of September to 7.3% in mid-October. That is a new low since Gallup began collecting employment data in January 2010.

The number of people seeking U.S. unemployment benefits suggests hiring is slowing. The Labor Department said Thursday that weekly applications dipped last week by 2,000 to a seasonally adjusted 386,000. But that was only after the department revised up the previous week's data to show 8,000 more people applied for benefits than first estimated.

New U.S. claims for jobless benefits climbed more steeply than anticipated last week, according to a Labor Department report on Thursday that further underlined the drag on economic activity from persistently weak job markets.

The jobless rate in 39 states and Washington, D.C. fell in June compared to the prior month, the Labor Department said. Just five states saw unemployment rate increases.

Already grappling with a surge in claims for unemployment insurance, recession-weary state labor departments are also now dealing with increased fraud.

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.

The money is sitting in a federal trust fund because 23 states haven't expanded their jobless benefits, Labor Department records ...