Evidence suggests ‘jobless economic recovery’

Thursday, April 24, 2003 | 9:58 a.m.

WASHINGTON -- Orders for durable goods unexpectedly jumped last month and first-time claims for unemployment benefits rose last week to the highest in a year, adding to evidence that a jobless economic recovery is under way.

Orders for items made to last at least three years increased 2 percent to $173.6 billion after dropping 1.5 percent in February, the Commerce Department said today. The Labor Department reported states received 455,000 applications for jobless benefits, up from 447,000 in the prior week.

And companies' efforts to reduce costs, including firing workers, may be starting to pay off on the bottom line and free capital for increased business spending. Through Wednesday, companies on the Standard & Poor's 500 Stock Index reported first-quarter profit averaging 4 percent above estimates and 10 percent higher than earnings in the first quarter of 2002.