WASHINGTON (Dow Jones)--New U.S. claims for state unemployment benefits fell by an unexpectedly large amount last week, although they remained at very high levels consistent with more steep declines in employment.
However, total claims jumped to a fresh record high, a reflection of how hard it has become for the unemployed to find new work during the recession.
Initial claims for state jobless benefits decreased 20,000 to 654,000 in the week ended April 4, the Labor Department said in a weekly report Thursday. That was the biggest decline since the beginning of the year, and more than doubled Wall Street expectations, according to a Dow Jones Newswires survey.
The prior week's level was revised up.
The four-week average - which aims to smooth volatility - fell 750 to 657,250.
The U.S. has lost 5.1 million jobs since the recession started in late 2007, with over 2 million of those losses occurring in the last three months alone, pushing the unemployment rate to a 25-year high of 8.5%. The early-April jobless claims figures, if sustained in coming weeks, point to another monthly drop in the 600,000 to 700,000 range in April.
The risk for the economy is that if the U.S. keeps losing jobs at that pace for too much longer, it could prevent a consumer-led recovery from taking hold. Federal Reserve economists now expect the jobless rate to rise "more steeply" into early 2010 before stabilizing "at a high level over the rest of the year," according to meeting minutes released Wednesday.
According to Thursday's Labor Department report, the tally of continuing jobless claims - those drawn by workers collecting benefits for more than one week in the week ended March 28 - surged another 95,000 to 5,840,000, the highest level since the government started keeping track in 1967.
Continuing claims have risen 12-straight weeks, and are up well over one million since the start of the year.
The unemployment rate for workers with unemployment insurance rose 0.1 percentage point to 4.4%, a 26-year high.
Not adjusted to reflect seasonal fluctuations, Kentucky reported the largest increase in new claims during the March 28 week, 5,029, due to layoffs in the automobile, trade and manufacturing industries.
California reported the biggest decrease, 7,057, due to fewer layoffs in service and manufacturing industries.
-By Brian Blackstone, Dow Jones Newswires; 202-828-3397; brian.blackstone@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=lTcqrympGmYnyRp%2FH7olUQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
April 09, 2009 08:30 ET (12:30 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 08 30 AM EDT 04-09-09
Thursday, April 9, 2009
Government Effect upon Employment is taking Hold, Will You be Ready for Friday's, May 1st Breakdown; Big Brother's Smoothing Won't Fool Us
WASHINGTON (Dow Jones)--New U.S. claims for state unemployment benefits fell by an unexpectedly large amount last week, although they remained at very high levels consistent with more steep declines in employment.
However, total claims jumped to a fresh record high, a reflection of how hard it has become for the unemployed to find new work during the recession.
Initial claims for state jobless benefits decreased 20,000 to 654,000 in the week ended April 4, the Labor Department said in a weekly report Thursday. That was the biggest decline since the beginning of the year, and more than doubled Wall Street expectations, according to a Dow Jones Newswires survey.
The prior week's level was revised up.
The four-week average - which aims to smooth volatility - fell 750 to 657,250.
The U.S. has lost 5.1 million jobs since the recession started in late 2007, with over 2 million of those losses occurring in the last three months alone, pushing the unemployment rate to a 25-year high of 8.5%. The early-April jobless claims figures, if sustained in coming weeks, point to another monthly drop in the 600,000 to 700,000 range in April.
The risk for the economy is that if the U.S. keeps losing jobs at that pace for too much longer, it could prevent a consumer-led recovery from taking hold. Federal Reserve economists now expect the jobless rate to rise "more steeply" into early 2010 before stabilizing "at a high level over the rest of the year," according to meeting minutes released Wednesday.
According to Thursday's Labor Department report, the tally of continuing jobless claims - those drawn by workers collecting benefits for more than one week in the week ended March 28 - surged another 95,000 to 5,840,000, the highest level since the government started keeping track in 1967.
Continuing claims have risen 12-straight weeks, and are up well over one million since the start of the year.
The unemployment rate for workers with unemployment insurance rose 0.1 percentage point to 4.4%, a 26-year high.
Not adjusted to reflect seasonal fluctuations, Kentucky reported the largest increase in new claims during the March 28 week, 5,029, due to layoffs in the automobile, trade and manufacturing industries.
California reported the biggest decrease, 7,057, due to fewer layoffs in service and manufacturing industries.
-By Brian Blackstone, Dow Jones Newswires; 202-828-3397; brian.blackstone@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=lTcqrympGmYnyRp%2FH7olUQ%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
April 09, 2009 08:30 ET (12:30 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.- - 08 30 AM EDT 04-09-09
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1 comment:
Like the image a lot ! May 1st it is, and will watch that 839 fib level. Great work on BBBY.. shorted yesterday at $31.59
Jeremy
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