Tell-tale stat: 4 million continuing U.S. unemployment claims

Posted Nov 20th 2008 9:55AM by Joseph Lazzaro
Filed under: Bad News, Employees, Economic Data, Recession

What's the most-riveting statistic in this week's jobless claims report? Continuing claims, which surpassed 4 million for the first time.

Continuing claims rose 109,000 in the week ended November 8. Economists pay close attention to continuing claims because it provides them with a comprehensive indicator of long-term job market conditions.

Continuing claims have risen more than 45% in the past year, which is not good news for job aspirants or for corporate revenue and earnings moving forward, so says economist Peter Dawson.

"The 4 million continuing claims total means those laid off are having a hard time finding suitable, comparable employment. There are very few jobs available, which is the major reason behind the rise in the unemployment rate," Dawson said. "Further, without falling continuing claims, it's really hard for corporate revenue and earnings to increase, and of course the stock market's low level reflects this."

Meanwhile, U.S. initial jobless claims rose 27,000 to 542,000 for the week ended November 15, the U.S. Labor Department said. Claims for the previous week were revised to 515,000. Economists surveyed by Bloomberg News had expected this week's initial jobless claims to total 505,000.

In addition, the 4-week moving average rose 15,750 to 506,500. 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.

Dawson said U.S. job losses, which have totaled about 1.2 million since the U.S. economic downturn started, will have to be reversed, for sustainable U.S. GDP growth to resume.

"There is no sustained economic expansion, no real increase in household formation, without job growth, which is why private and public policy makers must do everything they can to increase employment," Dawson said. "Ultimately, it's the key to U.S. economic health."

Tags: inthenews, jobless claims, U.S. economy, U.S. Labor Department, unemployment

Print this

Reader Comments (Page 1 of 1)

11-20-2008 @ 10:43AM

Virgil Bierschwale said...

There is a bigger picture here that most don't see.

I have talked to many people like myself that have been out of work more the last 6 years then we have worked and we don't fall on any of the unemployment reports.

I told myself that I would NEVER file for unemployment because I have always been able to find work or create work, but even I finally applied for unemployment last week which is a humbling experience.

If a person like myself that has a lot of skills that I can bring to the table cannot find a job, well I find that very interesting and I've spent 6 years diagnosing it and the only thing I can come up with is the article titled "The Global Economy" that I have at http://www.KeepAmericaAtWork.com and the article titled "Your wages do matter"

Virgil
http://www.KeepAmericaAtWork.com

11-20-2008 @ 11:36AM

debbie said...

i have been out of work seens july they fired because i would not move my car out of employee parking it was parking seens i started in 2001 my car wasnot part of my job but uneployment claims it was so they denied me i have no money and no job there are none out there so i am losing everything i have

11-20-2008 @ 12:33PM

BHarrison said...

Well Debbie, what can we say. Unemployment Agency even rules "for" employees who were charged with "theft" . . . care givers in nursing homes who steal from the old people . . . so how can they deny your claim? Amazing isn't it? Wish you well in all of this.