Initial claims for unemployment aid rise to 465K

WASHINGTON (AP) — The tally of newly laid-off workers requesting unemployment benefits rose last week for the first time in five weeks as the job market remains sluggish.

Initial claims for jobless aid rose by 12,000 to a seasonally adjusted 465,000, the Labor Department said today. Many economists had expected a flat reading or small drop.

The rise suggests that jobs remain scarce and some companies are still cutting workers amid weak economic growth. Initial claims have fallen from a recent spike above a half-million last month. But they have been stuck above 450,000 for most of this year.

"What's becoming increasing clear is that this isn't a normal recovery," said Dan Greenhaus, chief economic strategist at Miller Tabak. "There's little we can do to create jobs until demand returns, and demand isn't returning."