Unemployment Down Only Slightly

Washington, DC, Sept 3—Applications fell by 4,000 to 570,000 in the week ended Aug. 29, exceeding the 564,000 median forecast of economists, figures from the Labor Department showed today in Washington.

The continued layoffs are one reason economists project consumer spending, which accounts for 70 percent of the economy, will be slow to strengthen. Analysts  forecast a Labor Department report tomorrow will show August payrolls fell by 230,000, the smallest decrease in a year.

Thirty-two states and territories reported a decrease in claims, while 21 showed an increase. These data are reported with a one-week lag.

The economy has lost 6.7 million jobs since the recession started in December 2007, the most of any downturn since the Great Depression. Even so, the 247,000 drop in payrolls reported for July was lower than economists projected.