New Jobless Claims Rise To Worrisome Level
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The number of people applying for unemployment benefits reached the highest level in 9 months last week, as employers appear to be laying off workers as the recovery from the recession continues to weaken.
The Labor Department reported Thursday that initial claims rose by 12,000 to 500,000 last week, marking the third consecutive week that first-time claims rose. The report suggest that the private sector may show a loss of jobs in August, the first such drop this year.
Economists had expected the claims to fall to 478,000, while the prior week’s view was revised to 484,000. The four-week moving average was 482,500, up 8,000 from the previous week’s revised average of 474,500.
Continuing claims for the week ending August 7 came in at 4.478 million, lower than the economist estimate of 4.5 million. The previous weeks continuing claims were 4.452 million.
Claims had been dropping steadily from the peak of 651,000 in March 2009 as the economy started to recover from the recession, but the improvements tapered off earlier this year and now claims are starting to grow again.
Stocks tumbled on the fears of more layoffs on Thursday after the report from the Labor Department. The Dow Jones industrial average is down 157.95 or 1.52 percent to 10,257.59 in midday market movement, while the Nasdaq has dropped 1.81 percent to 2,175.52 and the S&P 500 has fallen 1.90 percent to 1,073.42.
The Labor Department reported Thursday that initial claims rose by 12,000 to 500,000 last week, marking the third consecutive week that first-time claims rose. The report suggest that the private sector may show a loss of jobs in August, the first such drop this year.
Economists had expected the claims to fall to 478,000, while the prior week’s view was revised to 484,000. The four-week moving average was 482,500, up 8,000 from the previous week’s revised average of 474,500.
Continuing claims for the week ending August 7 came in at 4.478 million, lower than the economist estimate of 4.5 million. The previous weeks continuing claims were 4.452 million.
Claims had been dropping steadily from the peak of 651,000 in March 2009 as the economy started to recover from the recession, but the improvements tapered off earlier this year and now claims are starting to grow again.
Stocks tumbled on the fears of more layoffs on Thursday after the report from the Labor Department. The Dow Jones industrial average is down 157.95 or 1.52 percent to 10,257.59 in midday market movement, while the Nasdaq has dropped 1.81 percent to 2,175.52 and the S&P 500 has fallen 1.90 percent to 1,073.42.
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