New jobless claims rise unexpectedly to 576K
WASHINGTON — The number of first-time claims for unemployment benefits rose unexpectedly for the second straight week, a sign that jobs remain scarce even as other data show the economy is stabilizing.
Many economists expect the economy to grow at a modest pace in the second half of this year, bringing an end to the longest recession since World War II. But jobs are likely to remain scarce and many analysts worry that persistently high unemployment could cause consumers to hold back on spending, threatening a recovery.
The Labor Department said Thursday the number of new jobless claims rose to a seasonally adjusted 576,000 last week, from a revised figure of 561,000. Wall Street economists expected a drop to 550,000, according to a survey by Thomson Reuters.
Economists closely watch initial claims, which are considered a gauge of layoffs and an indication of companies’ willingness to hire new workers.
“Consumer spending is going to have a very difficult time recovering with the labor market as weak as it is,” said Joshua Shapiro, chief U.S. economist at MFR Inc.
The Conference Board’s index of leading economic indicators rose for a fourth straight month in July, gaining 0.6 percent. That was slightly less than economists expected and a slower rate than in the prior three months.
Still, the Conference Board said its index, which is meant to project economic activity in the next three to six months, suggests the recession has bottomed out and growth in economic activity will begin soon. Six of the 10 indicators that comprise the index increased in July, including employment data and stock prices. Consumer expectations were the biggest negative factor.
Meanwhile, the Mortgage Bankers Association said more than 13 percent of American homeowners with a mortgage are either behind on their payments or in foreclosure, a record tally as the recession leaves more people unemployed. About a third of new foreclosures between April and June were prime, fixed-rate loans, up from one in five a year earlier.
The jobless claims figures are volatile, and had been trending down, after remaining above 600,000 for most of this year. The new report indicates that the labor market is still weak. In a healthy economy, initial claims are usually around 325,000 or below.
The four-week average of initial claims, which smooths out fluctuations, rose for the second straight week to 570,000.
The number of people remaining on the benefit rolls dropped by 2,000 to 6.24 million. Analysts had expected a slight decline. The continuing claims figures lag initial claims by a week.
The stock market rose slightly in morning trading. The Dow Jones industrial average added about 35 points, while broader indices also edged up.
When federal emergency programs are included, the total number of jobless benefit recipients was 9.18 million in the week that ended Aug. 1, the most recent data available. That was down from 9.25 million in the previous week. Congress has added up to 53 extra weeks of benefits on top of the 26 typically provided by the states.
The large number of people remaining on the rolls is an indication that unemployed workers are having a hard time finding new jobs.
Still, layoffs have slowed recently. The department said earlier this month that companies cut 247,000 jobs in July, a large amount but still the smallest number in almost a year.
The unemployment rate dipped to 9.4 percent in July from 9.5 percent, its first drop in 15 months. But many private economists and the Federal Reserve think the rates could top 10 percent by next year.
The recession, which began in December 2007 and is the longest since World War II, has eliminated a net total of 6.7 million jobs.
More job cuts were announced this week. Bethesda, Md.-based defense contractor Lockheed Martin Corp. said it will eliminate about 800 jobs in its space systems division, and San Francisco-based video and audio conferencing company Polycom Inc. said it will cut 3 percent of its 2,600 person work force.
Among the states, Tennessee had the largest increase in claims with 2,525 for the week ended Aug. 8, which it attributed to more layoffs in the transportation equipment, industrial machinery, and rubber and plastics industries. The next largest increases were in North Carolina, Wisconsin, Georgia and Washington.
California reported the largest drop in claims of 5,635, which it attributed to fewer layoffs in the construction, trade and service industries. Michigan, Ohio, Kentucky and Delaware had the next largest decreases.
____
AP Business Writers Alan Zibel in Washington and Tali Arbel in New York contributed to this report.
| - Michigan jobless rate, nation's highest in August, up slightly to 15.3 percent in September
- Obama says he'll explore every possible avenue to create jobs, grow the economy
- Fed officials were conflicted over program to drive down mortgage rates, aid housing
- JPMorgan earns $3.6 billion in 3rd quarter, but warns loan losses to remain elevated
- Economist Krugman warns against premature exit from emergency crisis measures
- Ford, UAW agree to tentative deal on labor contract changes; union leaders meet Tuesday
- Survey: Economists say recession is over, predict moderate, slow-paced recovery
- The recession may be over, yet job losses endanger recovery, create woes for Democrats
|
Related News
New claims for unemployment benefits rise more than expected to 551,000, jobs remain scarceOctober 1st, 2009 New jobless claims rise more than expected to 551KWASHINGTON — First-time claims for jobless benefits increased more than expected last week, a sign employers are reluctant to hire and the job market remains weak. And while consumer spending jumped by the most in nearly eight years in August due partly to the government's Cash for Clunkers program, economists worry whether that rebound can be sustained with U.S.
New jobless claims fall unexpectedly to 530,000, 3rd straight drop; total claims also declineSeptember 24th, 2009 New jobless claims drop unexpectedly to 530KWASHINGTON — The number of newly laid-off workers seeking unemployment benefits fell for the third straight week, evidence that layoffs are continuing to ease in the earliest stages of an economic recovery. The Labor Department said Thursday that initial claims for unemployment insurance dropped to a seasonally adjusted 530,000 from an upwardly revised 551,000 the previous week.
New jobless claims fall more than expected to 550,000, total unemployment rolls also dropSeptember 10th, 2009 New jobless claims fall more than expected to 550KWASHINGTON — First-time claims for jobless benefits fell more than expected last week, evidence that companies are laying off fewer workers as the economy improves. The Labor Department said Thursday that initial claims for unemployment insurance fell to a seasonally adjusted 550,000 from an upwardly revised 576,000 in the previous week.
Summary Box: New jobless claims dip less than expected, weak labor market may hinder recoverySeptember 3rd, 2009 Summary Box: Jobless claims dip less than expectedJOBLESS CLAIMS ELEVATED: The Labor Department said the number of laid-off workers applying for benefits dipped to 570,000 from an upwardly revised 574,000 the previous week. The number of Americans continuing to receive benefits rose unexpectedly to 6.23 million.
First-time jobless claims, total benefit rolls fall as companies lay off fewer workersAugust 27th, 2009 New jobless claims and total benefit rolls dropWASHINGTON — The government says the number of newly laid-off workers filing claims for jobless benefits dropped last week, and the number of people remaining on the rolls also fell, evidence that layoffs have eased. Still, both figures remain above levels associated with a healthy economy, and analysts expect the unemployment rate to keep rising.
New jobless claims rise unexpectedly to 558,000, while continuing claims drop to 6.2 millionAugust 13th, 2009 New jobless claims rise unexpectedly to 558,000WASHINGTON — The number of newly laid-off workers filing claims for unemployment benefits rose unexpectedly last week, while the tally of continuing claims fell. Despite the increase in new claims, they remain below peak levels above 600,000 where they were stuck for most of this year.
Summary Box: Jobless claims drop in positive sign for economyAugust 6th, 2009 Summary Box: Jobless claims drop as layoffs slowWHAT HAPPENED: The government said Thursday that initial jobless claims fell to 550,000 last week from 588,000 the previous week. While still high, new claims have dropped by about 50,000 in the past month.
New jobless claims up, mainly due to seasonal changes, but trend is down; fewer receiving aidJuly 30th, 2009 Jobless claims show downward trend in hopeful signWASHINGTON — The number of newly laid-off workers filing first-time claims for jobless benefits rose last week, the government said, though the increase was mostly due to seasonal distortions. Many economists say new claims, which track layoffs and firings, are trending downward in a modest sign of improvement in the labor market.
New jobless claims rise more than expected, mostly due to seasonal distortionsJuly 30th, 2009 New jobless claims rise more than expectedWASHINGTON — The number of newly laid-off workers filing first-time claims for jobless benefits rose last week, the government said, though the increase was mostly due to seasonal distortions. Many economists say new claims, which track layoffs and firings, are trending downward in a modest sign of improvement in the labor market.
New jobless claims probably rose but numbers may be blurred again by temporary auto shutdownsJuly 23rd, 2009 Ahead of the Bell: Jobless claimsWASHINGTON — Wall Street economists expect the number of newly laid-off workers seeking unemployment benefits fell slightly last week, after two straight increases renewed analysts' concerns about the weak labor market. A Labor Department report is projected to show new unemployment insurance claims fell to a seasonally adjusted 565,000 from 576,000 the previous week, according to economists surveyed by Thomson Reuters.
New jobless claims rise more than expected to 554,000, total unemployment benefit rolls fallJuly 23rd, 2009 New jobless claims rise to 554K, total rolls fallWASHINGTON — The number of newly laid-off workers seeking jobless benefits rose last week, though the government said its report again was distorted by the timing of auto plant shutdowns. Unemployment insurance claims have declined steadily since the spring, but most private economists and the Federal Reserve expect jobs to remain scarce and the unemployment rate to top 10 percent by year-end.
Initial jobless claims and continuing claims fall, evidence that layoffs are easingJuly 2nd, 2009 Initial and continuing jobless claims fallWASHINGTON — The government says the number of newly laid-off workers filing for unemployment insurance dropped last week, a sign job cuts are easing. The Labor Department said Thursday that initial jobless benefit claims fell by 16,000 to a seasonally adjusted 614,000.
New jobless claims jump unexpectedly to 627,000; continuing claims rise to 6.74 millionJune 25th, 2009 New jobless claims rise unexpectedly to 627KWASHINGTON — The number of people filing new jobless claims jumped unexpectedly last week, and the total unemployment benefit rolls rose to more than 6.7 million. The Labor Department data released Thursday show jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.
Total unemployment insurance rolls drop for first time since early JanuaryJune 18th, 2009 Total jobless rolls drop sharply to nearly 6.8MWASHINGTON — The total number of people on the unemployment insurance rolls has dropped for the first time since early January, while first-time claims for benefits rose slightly. The Labor Department says the total unemployment insurance rolls fell by 148,000 to 6.76 million, the largest drop in more than seven years and a sign that layoffs are easing.
Summary Box: Jobless claims dip, but unemployment rate expected to keep risingJune 4th, 2009 Summary Box: Jobless claims dip, but work scarceJOBLESS CLAIMS EASE: The number of newly laid-off workers filing initial claims for unemployment insurance fell Thursday, and so did the total number of people on the jobless benefit rolls. JOBS STILL SCARCE: Still, the drops were small and there is little indication companies are hiring.
Loading ...