Business Highlights

Jobless claims show labor market may slow recovery

WASHINGTON (AP) — New claims for jobless aid fell less than expected last week, and the number of people continuing to receive unemployment benefits rose — further signs that any economic recovery will be hindered by a weak job market and flat incomes.

Most economists think the recession is over, but they say the jobless rate will keep rising until at least next summer as the economy struggles to mount a sustained recovery.

The nation's major retailers on Thursday reported lackluster results from August back-to-school sales. Results in established stores fell 2.1 percent in August compared with the same month last year, a compilation of 31 retailers' results by the International Council of Shopping Centers and Goldman Sachs indicated. Some major discounters managed to exceed expectations.

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Retail sales fall in August, but drops are easing

NEW YORK (AP) — Shoppers limited their back-to-school purchases and stayed focused on necessities in August, resulting in the 12th straight month of declining sales for retailers. But there were signs the holiday season could be less dismal than feared.