News Buzz: Job Losses, Oil Up and Dollar Down, and More

Employers cut payrolls by 62,000 in June, the sixth consecutive month of nationwide job losses, the Associated Press reported. The unemployment rate held steady at 5.5 percent, a level that is the highest in four years. The figures, released by the Labor Department today, showed that employers are cautious in the face of high energy prices and a sluggish economy that is being held back by housing, credit, and financial problems. The report was largely on target with economists' forecasts. Meanwhile, the number of newly laid off people signing up for unemployment insurance rose sharply last week. The Labor Department says new applications jumped by 16,000, to 404,000, the highest level since late March. The increase was bigger than economists were expecting. A year ago, jobless claims stood at 322,000.

Oil Hits a Record Price, Again

Oil prices neared $146 a barrel today for the first time ever amid reports on declining U.S. stockpiles and the threat of conflict with Iran, the Associated Press said. Comments by Saudi Arabia's oil minister suggesting his country had no immediate plans to boost production also lifted prices. The European Central Bank raised its benchmark interest rate Thursday by a quarter of a percentage point to 4.25 percent in an effort to slow inflation in the 15-nation euro zone. That action could further weaken the U.S. dollar and drive oil, which is priced in dollars, even higher. The latest spike means a barrel of crude has gone up by more than 50 percent since the end of last year, when oil was going for $96 a barrel.

A Family Reunion for a Rescued Hostage

Ingrid Betancourt, a French-Colombian politician held hostage for six years, was reunited with her family today. The Associated Press reported that Betancourt raced to the stairs as a French government plane arrived in Bogota this morning and threw her arms around her children, Lorenzo, 19, and Melanie, 22. Betancourt, a former Colombian presidential candidate, says she will go to France, which campaigned for her freedom, AP said. Betancourt was freed in a daring government operation yesterday. The rescue was another sign of success for Colombia in its battle against the scourge of kidnapping, which has plagued the country for years. Kidnappings in Colombia have plummeted from a peak of 3,572 victims in 2000 to 521 in 2007. Colombian forces, bolstered by U.S. training, have also become more proficient at rescues. U.S. News recently told the story of one successful rescue operation.