US unemployed highest since '03

More Americans than forecast filed initial claims for unemployment insurance last week, while total benefit rolls rose to the highest level in almost five years, as companies cut staff to maintain profits in a slowing economy.

First-time jobless claims fell to 445,000 in the week ended Sept 6 from a revised 451,000 the prior week that was more than initially reported. The number of people staying on rolls rose 122,000 to 3.525 million, the highest since October 2003.

The labor market is weakening as the biggest housing recession in a generation spills over to the broader economy, slowing demand and causing a surge in financial losses. Economists surveyed by Bloomberg News this month forecast consumer spending in the current quarter slowed to the weakest pace since 1992.