Initial Claims for Unemployment Fall, but Less Than Expected

Posted Jun 10th 2010 12:00PM by Connie Madon
Filed under: Economic Data, Housing, Recession

The Labor Department reported that in the week ended June 5, initial claims for unemployment fell only 3,000 to 456,000. Economists surveyed by Bloomberg News had predicted claims to fall to 450,000. The four-week average rose to 463,000 last week from 460,000 previously.

Here is a breakdown of of subcategories that were reported:

The number of people continuing to receive jobless benefits declined by 235,000 in the week ended May 29, the lowest since December 2008. This number is deceiving because it does not indicate how many persons exhausted their benefits.

Thirty states and territories reported an increase in claims, while 23 reported a decrease.
Private payrolls rose only 41,000 in May. Economists had predicted 189,000.

These numbers clearly show that the employment picture is not improving enough to stimulate consumer spending which accounts for 70% GDP. Walmart (WMT), the world's largest retailer, said that gasoline prices and unemployment hurt traffic to its U.S. stores.

The heavy drag of unemployment on the economy is hampering growth. In past recessions, employment picked up rather quickly and the economy was able to get back on track. This recession is different. The damage done from the financial meltdown was greater, more jobs were lost (many of which will not return) and the housing market collapsed at the same time.

Americans had to flee their homes or be foreclosed upon. Employers are hiring part-time or temporary workers at minimum wage.

Tags: inthenews, unemployment claims, Walmart

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Reader Comments (Page 1 of 1)

6-10-2010 @ 1:17PM

Iridium said...

Nooooooo do not speak the truth, the market is having a nice fool's rally!!!!!

Everyone must have got really good paying jobs for continuing claims to drop by almost a quarter million. Nobody exhausts their unemployment benefits!!!

The economy is doing great, so great that we can have $120 a barrel oil with no consequences. $5 a gallon gas, not a hindrance to the great economy of the USA!!!!

Hell you can foreclose every property on my street, the Realtors say my house is still going to be worth twice what I paid in 2008!!!

Forget about the GDP to debt ratio. We can spend $20 trillion next year, come on there is $1.2 quadrillion in the derivatives market, $20 trillion doesn't even make a dent. The financial banks won't let the US fall because they know it will be their ass as well.

6-12-2010 @ 4:38AM

RP said...

ve how these out of touch Senators imply that American job seekers are "lazy" while they enjoy a four day weekend, playing with millions of lives. Many people are so upside-down on their mortgages they no longer have the mobility to move to increase employment likely hood.
We have bailed out banks, the auto industry, countries and now the BP cleanup. We paid into the system and now Republicans and and Blue Dogs act as if it theirs to dole out as they wish.
It must be nice to have a salary for life, with no accountability.
If this continues in our country we will have riots that make Greece's look like a Lolapalooza love fest.