The number of Americans seeking unemployment benefits unexpectedly declined and manufacturing in the Philadelphia area contracted, highlighting forecasts for an uneven pace of economic recovery.
Initial jobless claims dropped by 3,000 to 450,000 in the week ended September. 11, the lowest level in two months, the Labor Department reported today in Washington. The Federal Reserve Bank of Philadelphia said its general economic index rose to minus 0.7 in September from minus 7.7 in August.
While the pace of staff cuts has slowed, ongoing reductions at companies like FedEx Corp are a reminder that it will take years to recover the 8.4 million jobs lost in the recession. Manufacturers, who led the rebound from the worst economic slump since the 1930s, are scaling back on concern consumer demand will be restrained by unemployment close to a 26-year high.
