U.S. Jobless Claims Fall While Corporate Cuts Signal More Pain

Even with fewer Americans applying for unemployment benefits last week, the labor-market outlook remains bleak.

While initial jobless claims fell by the most in a month, according to Labor Department data Thursday, they’re still double the highest level during the last recession. And further declines are in question after states including Texas and Florida delayed or walked back reopening plans amid a surge in Covid-19 infections.

Meanwhile, companies are slashing expenses as they cope with demand that remains well below pre-pandemic levels. Wells Fargo & Co., the largest employer among U.S. banks, is preparing to cut thousands of jobs starting ...