Jobless claims hit highest point since March 2002

The nation's jobs market sent a fresh cry of distress as the number of newly laid off people unexpectedly hit the highest level in more than six years, a Labor Department report showed Thursday. The faltering economy and tight credit have forced companies to cut back, and as the job market shrinks, consumer spending may dwindle, too. All that spells potentially more trouble for the country later this year as the bracing tonic of the government's tax rebates disappears. "Consumers will be very tight fisted in the coming months," predicted Richard Yamarone, economist at Argus Research. "Nothing shuts down the consumer — and the economy — like the loss of a job." Companies are laying off workers as they struggle with slowing customer demand, harder-to-get credit and high costs for fuel and other raw materials. New applications... [read full story]