Slow recovery keeps unemployment high

WASHINGTON - High unemployment isn't going away.

The slow-motion pace of economic growth shows the recovery from the recession is too weak to generate enough jobs for 15.3 million unemployed people. And a still-elevated number of new filings for jobless benefits suggests layoffs continue to complicate the problem.

Two reports Thursday offered evidence on all those fronts: For many Americans, the economy doesn't feel like it's recovering.

The unemployed face fierce competition for job openings. Those with jobs are getting smaller paychecks. A growing number of people are at risk of falling into foreclosure on their homes. And people with only the most stellar credit are likely to get a new loan.

"We're out of recession, but the recovery is not going to bring a whole lot of smiles," said Joel Naroff, of Naroff Economic Advisors, of Holland, Pa.

One of Thursday's reports, from the Commerce Department, showed that the nation's economy grew at a 3 percent annual rate from January to March. The new reading, based on more complete information, was weaker than an initial estimate of 3.2 percent a month ago. The department will give its final figure for the first-quarter gross domestic product - the broadest measure of economic activity - next month.

The reasons for the lower GDP figure: Consumers spent less than first estimated. Same goes for business spending on equipment and software. Also, the nation's trade deficit was a bigger drag on economic activity. All of that led to slower growth last quarter than first estimated.

In a separate report, the Labor Department said the number of newly laid-off workers filings claims for unemployment benefits fell to 460,000 last week. But the latest level of claims is actually higher than it was at the start of the year.

By this point in the recovery, economists had hoped claims would be in the 400,000 to 425,000 range.