U.S. initial jobless claims dipped during the most-recent reported week, but continuing claims hit a 25-year high -- a statistic that underscores the scope of the nation's job slump. U.S. initial jobless claims fell 4,000 to 481,000 for the week ended November 1, the U.S. Labor Department announced Thursday. Claims for the previous week were revised to 485,000. Economists surveyed by Bloomberg News had expected this week's initial jobless claims to total 480,000.
However, continuing claims hit a 25-year high, rising 122,000 to 3.84 million for the week ended October 25. In addition, the 4-week moving average remained the same at 477,000. Economists view the 4-week average as a better indicator of unemployment conditions than initial claims, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.
Economist Peter Dawson said rising continuing claims, which have increased about 46% in the past year, underscore job market conditions in the current recession.
"Layoffs proceed, but they're not enormous, so far. But there is no net job growth. In layman's terms, there are very few jobs available, it's hard to find employment once you've been downsized, and the continuing claims total is a direct indicator of that," Dawson said.
Dawson said a growth engine has to emerge from some source -- private or public -- because there will be no economic turnaround without job growth and falling unemployment levels, particularly in continuing claims.
"The No. 1 issue in the U.S., not just in the auto sector, housing and in financial services, is jobs. It has to be the No. 1 issue for the new Congress and President-elect Obama," Dawson said.
The largest increases in initial claims for the week ending October 25 were in: Pennsylvania, +5,579, California, +4,617, Illinois, +4,314, Ohio, +3,949, and North Carolina, +3,179. The largest decreases were in: Texas, -5,898, Tennessee, -2,078, Kansas, -1,067, Arkansas, -1,003, and Florida, -661.
Economic Analysis: As economist Dawson noted, continuing claims, at a 25-year record 3.84 million, speak to the nature of the recession. To get corporate earnings headed higher and unemployment lower, the U.S. must find / encourage / create an economic growth catalyst.
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Reader Comments (Page 1 of 1)
11-06-2008 @ 12:26PM
Virgil Bierschwale said...
I agree...
Number 1 priority is jobs.
You don't think its that bad ?
I wrote two articles today, one that I didnt want to write documenting what we are doing to ourselves.
We can turn this around overnight.
You don't believe me ?
Contact me, read my articles and check out the "Wall of Shame" on my site at http://www.KeepAmericaAtWork.com and I'll show you how.
Virgil
http://www.KeepAmericaAtWork.com