U.S. initial jobless claims remain at elevated levels, even after factoring out the effect of Hurricanes Gustav in Louisiana and Hurricane Ike in Texas, the U.S. Labor Department announced Thursday.U.S. initial jobless claims rose 1,000 to 497,000 for the week ended September 27 -- the highest level in seven years -- the Labor Department said. Without the hurricane-related claims, initial filings would have totaled about 439,000, the department said. Claims for the previous week were revised 3,000 higher to 496,000. Economists surveyed by Bloomberg News had expected this week's initial jobless claims to total 475,000.
Also, the 4-week moving average increased 11,500 to 474,000. Economists view the 4-week average as a better indicator of unemployment conditions, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.
Economist Peter Dawson said "job losses continue to occur at a troubling rate, even after taking into consideration the act-of-nature events of Hurricanes Gustav and Ike."
"We have an economy whose fundamentals are definitely not sound. The housing sector remains in a severe slump, financial service layoffs and consolidation obviously will continue, and business investment is low," Dawson said. "Exports are about the only positive data point remaining for the economy, but that too may come under pressure if global growth slows."
Dawson said public officials' attention is understandably focused on the U.S. Congress' rescue package, as the nation works to stabilize the financial system, but after that objective has been achieved, jobs should be at the forefront. "We have to find a growth catalyst, or layoffs will continue to rise, which will no doubt worsen the home foreclosure picture," Dawson said. "In other words we've got to concentrate on both keeping markets liquid and keeping people liquid for the financial system to recover."
The largest increases in initial claims for the week ending September 20 were in: Texas, +22,235, Louisiana, +9,671, Washington, +2,407, Michigan, +1,640, and Ohio, +1,426. The largest decreases were in: Kansas, -3,223, South Carolina, -2,730, North Carolina, -2,617, New York, -1,973, and Tennessee, -1,593.
Meanwhile, continuing claims also rose in the latest data file week. The number of continuing claims increased 48,000 to 3.591 million from a revised 3.543 million for the week ended September 20, the latest period for which figures were available.
Economic Analysis: Another poor, weekly jobless report, but one skewed higher by Hurricanes Gustav and Ike. In addition, the 4-week moving average continues to rise and is at an elevated level. Further, the continuing claims total also rose to 3.591 million -- another indication of the difficultly U.S. adults are having trying to secure new employment. Economists like Dawson underscore the need for the nation to find / encourage / create a growth catalyst to reverse the employment trend -- a top priority for the new U.S. President and Congress.
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Reader Comments (Page 1 of 1)
10-02-2008 @ 12:39PM
ATHELSTAN said...
The employment offices of New York, New Jersey, and Connecticut are filled with the formerly rich who had their money tied up in hedge funds which thrive on short selling. Now these people, including the hedge fund mangers themselves, have to sell their penthouses, foreign sports cars, antiques, rare art, and homes in The Hamptons. When the rich and super rich are suffering, where do you think YOU will be shortly???