U.S. jobless claims -- a 'troubling rate' of job losses

Joseph Lazzaro — Thu, 02 Oct 2008 11:11:00 EST

Filed under: Bad News, Employees, Economic Data, Recession

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."

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U.S. weekly jobless claims soar on Hurricane Ike

Joseph Lazzaro — Thu, 25 Sep 2008 09:24:00 EST

Filed under: Bad News, Employees, Economic Data, Recession

Last week it was Hurricane Gustav, this week it's Hurricane Ike.

U.S. initial jobless claims jumped to their highest level in seven years, up 32,000 to 493,000 for the week ended September 20, as Hurricane Ike forced layoffs in Texas and Louisiana, the U.S. Labor Department announced Thursday.

The Labor Department said Hurricane Ike claims boosted the above total by about 50,000. Claims for the previous week were revised 16,000 higher to 461,000.

Economists surveyed by Bloomberg News had expected this week's initial jobless claims to total 445,000.

Also, the 4-week moving average increased 16,000 to 462,500. 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 loss numbers continue to show a U.S. economy that's in anemic condition. The U.S. economy is most certainly in a recession and credit market stress will only worsen commerce conditions."

"We're addressing the financial crisis right now, which is paramount and has to be the order of the day for public officials," Dawson said. "Lawmakers attention must be focused on passing the U.S. Treasury's bailout bill to keep markets liquid, which is an urgent matter. But after that's in place lawmakers should turn their attention to fiscal stimulus. Many people whose jobs were interrupted by Hurricane Ike will be rehired, but many jobs lost in the financial sector will not come back, due to consolidation, and this will push unemployment higher."

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U.S. weekly jobless claims soar on Hurricane Ike originally appeared on BloggingStocks on Thu, 25 Sep 2008 09:24:00 EST. Please see our terms for use of feeds.

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