Kathianne
08-05-2010, 08:51 AM
http://www.bloomberg.com/news/2010-08-05/jobless-claims-in-u-s-unexpectedly-climb-to-three-month-high-of-479-000.html
Jobless Claims in U.S. Unexpectedly Climb to Three-Month High
By Bob Willis - Aug 5, 2010
More Americans than projected filed applications for unemployment insurance last week, indicating employers kept cutting staff as the recovery showed signs of slowing.
Initial jobless claims climbed by 19,000 to 479,000 in the week ended July 31, the most since April and exceeding the highest estimate of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people receiving unemployment benefits dropped, while those getting extended payments rose.
A cooling economy means employers will resist taking on more staff in coming months, raising the risk consumer spending will weaken further. The jobless rate rose last month as payroll increases weren’t large enough to keep up with gains in the labor force, economists forecast a government report tomorrow will show.
“There really is no upside momentum in the labor market, and that’s a critical long-term determinant of where the economy is going to go,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “People just aren’t getting jobs.”
Stock-index futures dropped after the report on concern the labor market was deteriorating. The contract on the Standard & Poor’s 500 Index fell 0.5 percent to 1,119.2 at 8:44 a.m. in New York. Treasury securities rose, sending the yield on the benchmark 10-year note down to 2.92 percent from 2.95 percent late yesterday.
Exceeds Forecasts
Economists forecast claims would fall to 455,000, according to the median of 43 projections. Estimates ranged from 444,000 to 470,000. The government revised the prior week’s total to 460,000 from a previously reported 457,000...
This stimulus summer is a killer.
Jobless Claims in U.S. Unexpectedly Climb to Three-Month High
By Bob Willis - Aug 5, 2010
More Americans than projected filed applications for unemployment insurance last week, indicating employers kept cutting staff as the recovery showed signs of slowing.
Initial jobless claims climbed by 19,000 to 479,000 in the week ended July 31, the most since April and exceeding the highest estimate of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people receiving unemployment benefits dropped, while those getting extended payments rose.
A cooling economy means employers will resist taking on more staff in coming months, raising the risk consumer spending will weaken further. The jobless rate rose last month as payroll increases weren’t large enough to keep up with gains in the labor force, economists forecast a government report tomorrow will show.
“There really is no upside momentum in the labor market, and that’s a critical long-term determinant of where the economy is going to go,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “People just aren’t getting jobs.”
Stock-index futures dropped after the report on concern the labor market was deteriorating. The contract on the Standard & Poor’s 500 Index fell 0.5 percent to 1,119.2 at 8:44 a.m. in New York. Treasury securities rose, sending the yield on the benchmark 10-year note down to 2.92 percent from 2.95 percent late yesterday.
Exceeds Forecasts
Economists forecast claims would fall to 455,000, according to the median of 43 projections. Estimates ranged from 444,000 to 470,000. The government revised the prior week’s total to 460,000 from a previously reported 457,000...
This stimulus summer is a killer.