U.S. jobless claims rise

The pace of layoffs in the U.S. has not slowed, data released Thursday shows.

The number of Americans filing new claims for jobless benefits jumped last week after three straight declines, the Labour Department said.

First-time claims rose by 12,000 to a seasonally adjusted 472,000, the highest level in a month.

The release overshadowed a report that showed consumer prices remain essentially flat.

Therise in jobless benefits claims and data released Wednesday showing new home construction plunged in May after government incentives expired have highlighted fears the economic rebound will notcontinue.

"We've definitely seen the economic recovery hit a wall," Jennifer Lee, an economist with BMO Capital Markets, said.

Lee said there's concern that the June employment numbers may show a decline in private-sector jobs after five straight months of gains.

A separate Labour Department report said consumer prices fell for the second straight month.

The 0.2 per cent decline in the consumer price index was pulled down by falling energy prices most notably a 5.2 per cent drop in gasoline prices.