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More Americans than projected filed applications for unemployment insurance last week, indicating redundancies remain elevated as the recovery moderated. Initial jobless claims climbed by 19,000 to 479,000 in the week ended July 31, the most since April Labor Department figures showed today in Washington.

The number of people receiving unemployment benefits dropped, while those getting extended payments rose. A cooling economy means employers will resist taking on more staff in coming months, raising the risk consumer spending will weaken further. The jobless rate rose last month as payroll increases were not large enough to keep up with gains in the labour force, economists forecast a government report tomorrow will show. There really is no upside momentum in the labour market, and thats a critical long-term determinant of where the economy is going, said Steven Ricchiuto, chief economist at Mizuho Securities in New York. People just arent getting jobs.