The number of new claims for unemployment benefits in the U.S. increased slightly in the latest week, adding fuel to increasing concern that the labor market and the overall economy is stalling, according to Reuters. On Thursday, the Labor Department reported that initial claims for jobless benefits increased by 1,000 in the week ending Jun. 4 to a seasonally adjusted level of 427,000, defying economists’ forecast for a modest decrease. The rise kept the level of claims above 400,000, which generally indicates that hiring is strong enough to bring the unemployment rate lower.
Meanwhile, the Commerce Department issued a separate report that showed a decrease in the size of the U.S. deficit in trade with the rest of the world during April. The data showed that surging exports narrowed the trade gap to $43.7 billion, which is down by 6.7% from the revised level of $46.8 billion recorded in March. Exports were up 1.3% in April to a record level of $175.6 billion, while imports dropped on supply-chain disruptions from the Japanese earthquake and tsunami. Imports were down 0.4% to $219.2 billion.