Initial jobless claims edge lower, continuing claims plunge again
Filed under: Economy
More good news on the employment front: Initial jobless claims fell 12,000 to 502,000 for the week ending Nov. 7, and continuing claims continued to plunge, falling 139,000 to 5.63 million, the U.S. Labor Department announced Thursday.A Bloomberg News survey had expected initial jobless claims to fall to 512,000 this week. Meanwhile, the four-week moving average for initial jobless claims decreased 4,500 to 519,750.
A year ago, initial jobless claims totaled 509,00 and continuing claims totaled 3.93 million.
Regarding jobless claims, economists view the four-week average as a better indicator of unemployment conditions, as it smooths out anomalies caused by strikes, holidays or other idiosyncratic events.
Economists also monitor the continuing claims stat because it provides a snapshot of how long it's going to take the typical person to find comparable employment after losing a job. In general, a continuing claims number above 3 million reflects a slack labor market, and points to extended job searches of six to nine months or longer.
The Brookings Institute, a primarily liberal think tank in Washington, D.C., said one way to prevent a double-dip recession would be to remain committed to existing stimulus programs. "What is essential ... is the continuation of stimulus programs that are currently scheduled to expire. Last week the House and Senate extended unemployment protection for workers who have lost jobs in the current recession. These protections ought to be extended until the job market improves significantly and it becomes easier for laid off workers to find jobs," National Journal Senior Fellow Gary Burtless wrote. "If unemployment is likely to remain over 9% for an extended time, there is a compelling case for additional public infrastructure investment. Given high unemployment in the construction and capital goods industries and federal borrowing costs that remain near a post-war low, it makes sense to invest in public capital projects over the next few years."
The largest increases in initial claims for the week ending Oct. 31, the latest week for which data is available, were in: Wisconsin, 1,501; Illinois, 1,390; Michigan, 1,135; Puerto Rico, 1,101; and Texas, 965. The largest decreases were in California, -6,752; Florida, -3,409; Georgia, -2,686; New York, -2,607, and North Carolina, -1,872.
Also, the highest insured unemployment rates for the week ending Oct. 24, the latest week for which data is available, were in: Puerto Rico, 6.4%; Oregon, 5.4%; Nevada, 5.2%; Pennsylvania, 4.9%; Alaska, 4.8%; Arkansas, 4.8%; California, 4.8%; Wisconsin, 4.8% North Carolina, 4.6%; Michigan, 4.5% and South Carolina, 4.5%.
Economic Analysis
The key data points this week: More substantial declines – 139,000 – in continuing claims, and the fall in initial claim increases in the states. Both of these items are encouraging. Investors should note how even the states with the worst initial claims increases are seeing only small increases -- 1,500, 1,135, etc., -- and how claim decreases are rising. Translation: Initial jobless claims have peaked in most states – another sign of a labor market that's beginning to heal.
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Reader Comments (Page 1 of 1)
11-12-2009 @ 12:12PM
D said...
What are the statistics by state of those unemployed that have exhausted benefits, or do not qualify for unemployment? What of the underemployed that have taken part-time jobs or lower paying jobs?
In Ohio, I am not so optimistic as the Wall Street wonders.
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11-12-2009 @ 1:00PM
T said...
I agree D, same goes for NJ. When they report stats claiming jobless claims fell compared to previous month do they consider the individuals whose benefits have expired and who no longer seek employment due to frustration and complete lost of hope finding employment. The White House is still trying to paint a rosy picture that the economy is better and all the unemployed should focus on getting their state representative to support government health care. What about extending COBRA Continuation Protection Act of 2009?
This is very important asfaras health care is concerned. There is a bill H.R 3930 before congress that would extend the Cobra assistance yet it has not even received a
co-sponsor. Time is running out on this too.
11-12-2009 @ 12:45PM
Chris said...
It is amazing the propaganda that is put out by our government and news media to keep people in OZ. Next month they will say we revised the data and it is more than we thought. I see now where $4.00 + gasoline is expected with 15 million not using gasoline to go to work because they are unemployed. SUPPLY/DEMAND theory. Yea rite !!
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11-12-2009 @ 1:31PM
sandy said...
1 /2 a million jobs lost and they think it's getting better ,,they are crazy ,,,,,and there's also a ton of people who just stopped looking ,,for jobs altogether,,These moronic economists have No idea how bad it it out there ,,,,,They also have to stop talking about raising interest rates ,,There is excess supply everywhere you look ,,,,,,and I don't see any impending comeback for the economy ...
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11-12-2009 @ 1:54PM
Cindy said...
What a bunch of lies. If any of this were really true do you think Congress would of extended unemployment benefits this week for another year? NO they would not have gone down that road if they thought job recovery was happening. They are putting out the propaganda so America wouldn't panic. but jobs are no where to be found as long as corporations and small businesses are under gov't attack with mandates and high taxes. And if people don't make what they used to make they will stay on unemployment until it runs out and work off the books to make up the difference.
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11-12-2009 @ 2:03PM
John said...
They never count people who have run out of unemployment benefits or have given up looking for jobs. The statistics always work that way. They did when bush and dick were raping America and they do now as Obama tries to fix the mess they left behind.
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11-12-2009 @ 4:44PM
T said...
There are 15.7 million people in the USA who are unemployed. See below
THE EMPLOYMENT SITUATION -- OCTOBER 2009
The unemployment rate rose from 9.8 to 10.2 percent in October
Household Survey Data
In October, the number of unemployed persons increased by 558,000 to 15.7 million. The unemployment rate rose by 0.4 percentage point to 10.2 percent,
the highest rate since April 1983.
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11-16-2009 @ 9:46AM
kinall said...
I am not sure if it’s just me or not. Depending on what day or time of the day...it's up then it's down then it's up then it's down. I just know that the phone didn't ring for all the countless number of applications I have put out there. I have all sorts of education and experience. I am disabled so that is yet another barrier to get around. I was fortunate to come across a company that allowed disabled professionals like me be able to secure employment. They have a variety of part time professional jobs for Disabled Americans. If you have had my same struggles check them out at www.jlodge.com. You can apply under the careers section.
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