Jobless Claims Fall to Lowest Level in 36 Weeks

WASHINGTON — 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. households facing rising unemployment, tight credit conditions and other obstacles.

The Labor Department said Thursday that initial claims for unemployment insurance rose to a seasonally adjusted 551,000 from 534,000 in the previous week. Wall Street economists expected an increase of 5,000, according to a survey by Thomson Reuters.

The increase comes after three weeks of declines. Weekly claims have been trending down since the spring, but the decline has been painfully slow. The four-week average, which smooths out fluctuations, dropped to 548,000, about 110,000 below its peak in early April (see chart above).

From the peak in early July, the four-week average has fallen by 110,750, and that measure of jobless claims has fallen in 19 out of the last 25 weeks. A comparison of the recent 110,750 decline to the last two recessions in the chart above, suggests that claims have been falling pretty sharply, and not "painfully slow," especially compared to the 1990-1991 recession.

Comments

[jeandit75:]

"A comparison of the recent 110,750 decline to the last two recessions in the chart above, suggests that claims have been falling pretty sharply, and not "painfully slow," especially compared to the 1990-1991 recession."

yes smart a...but the number of unemployed is much more higher today than in 1990-1991. We don't only live in a "second derivative" world you know.

Also, not because your Flynt neighbour can now sell his home at $7000 as opposed to $6000 at the bottom that this means that the Michigan unemployed and owners of $7000 worht houses will spend their way out of that depression.

Oct 02 07:15 AM

[conceptwizard:]

Nearly half the nation's 25 biggest retail chains expect to hire fewer holiday workers this season than they did last year, another sign that retailers aren't counting on recession-strained shoppers to relax the tight grip on their pocketbooks...

About 40% of stores surveyed across a broad swath of retailing, including consumer-electronic chain Best Buy Inc., teen-retailer American Eagle Outfitters Inc., and luxury-goods seller Saks Inc., told the Hay Group that they expect to hire between 5% and 25% fewer temporary workers this year than last, when the recession forced many retailers to trim staff in response to falling sales.

That's a grimmer outlook than the Hay survey found a year ago, when 29% of retailers said they would be slashing their holiday workforce.

Oct 02 09:28 AM

[notsosmart:]

dont bother reading this dribble.this guy is a joke.better off watching a sitcom on tv.

Oct 02 11:47 AM