Business
See other Business Articles
Title: Jobless Claims in U.S. Declined 3,000 Last Week in Sign Labor Market Heals
Source:
Bloomberg
URL Source: http://noir.bloomberg.com/apps/news?pid=20601068&sid=aCSZWxeMfX7g
Published: Dec 23, 2010
Author: By Shobhana Chandra
Post Date: 2010-12-23 11:44:00 by Brian S
Keywords: None
Views: 2115
Comments: 2
Dec. 23 (Bloomberg) -- Initial U.S. jobless claims fell last week and the number of people on unemployment benefit rolls dropped to a two-year low, reinforcing evidence the labor market is improving. First-time filings for jobless insurance declined by 3,000 to 420,000 in the week ended Dec. 18, matching the median forecast in a Bloomberg News survey, Labor Department figures showed today in Washington. Those already collecting benefits fell in the previous week to 4.06 million. Fewer firings may be an initial step toward the increased hiring that’s needed to spur consumer spending, which accounts for 70 percent of the economy. At the same time, Federal Reserve officials said economic growth is short of the pace needed to reduce an unemployment rate near 10 percent. “The claims numbers are consistent with employment growth starting to pick up,” said Jim O’Sullivan, global chief economist at MF Global Ltd. in New York, who correctly forecast today’s figure. At the same time, “it’s going to take a while for the unemployment rate to come down.” Estimates of initial claims in the Bloomberg survey of 45 economists ranged from 400,000 to 430,000. The Labor Department revised the prior week’s figure up to 423,000. Today’s report corresponds to the week the Labor Department surveys businesses to calculate the monthly payroll figures. The next jobs report is due Jan. 7. Separate data from the Commerce Department showed spending by consumers increased in November for a fifth month. Household purchases rose 0.4 percent after a 0.7 percent increase in October that was almost twice as large as previously estimated. Incomes climbed 0.3 percent. Capital Equipment Orders for U.S. capital equipment rebounded in November, signaling a slowdown in business investment may be less pronounced than some economists projected, another report showed. Bookings for goods like computers and communications gear climbed 2.6 percent after a 3.6 percent decline in October that was smaller than previously estimated, the Commerce Department said. Total orders dropped 1.3 percent, depressed by volatile demand for aircraft, and bookings excluding transportation equipment rose more than forecast. Stock-index futures fluctuated after the reports. The contract on the Standard & Poor’s 500 Index maturing in March fell 0.1 percent to 1,253.10 at 9:06 a.m. in New York. Treasury securities were lower, pushing the yield on the benchmark 10- year note up to 3.37 percent from 3.35 percent late yesterday. Four-Week Average The four-week moving average, a less volatile measure than the weekly claims figures, rose to 426,000 last week from 423,500, today’s data showed. The number of people continuing to receive jobless benefits declined by 103,000 in the week ended Dec. 11. They were forecast to fall to 4.1 million. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. Those who’ve used up their traditional benefits and are now collecting emergency and extended payments decreased by about 152,000 to 4.68 million in the week ended Dec. 4. President Barack Obama on Dec. 17 signed into law an $858 billion bill extending for two years Bush-era tax cuts for all income levels. It also continues expanded jobless insurance benefits to the long-term unemployed for 13 months and reduces payroll taxes for workers by two percentage points during 2011. Unemployment Rate The unemployment rate among people eligible for benefits, which tends to track the jobless rate, fell to 3.2 percent in the week ended Dec. 11, the lowest since Nov. 22, 2008, from 3.3 percent in the prior week, today’s report showed. Forty-three states and territories reported a decline in claims, while 10 reported an increase. These data are reported with a one-week lag. Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates. That relationship has broken down in recent months as some companies continue to cut staff while others expand, indicating an uneven rebound. “The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment,” Fed officials said in a statement after their policy meeting on Dec. 14. Businesses that are adding workers include Motorola Inc., the Schaumburg, Illinois-based maker of mobile phones. “We have been” hiring, co-Chief Executive Officer Greg Brown said in a Bloomberg Television interview on Dec. 15. Even so, “we need to create jobs faster.”
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Brian S (#0)
Uh-HUH. Reality is in blue: Getting tired of the bozoed calcon following me around on the 'net, wanting to discuss "tossing salad." Sorry, you sick rump-ranger. NOT interested.
That # qualifies as Noise only. We need 300,000 jobs per month. A Min of 150K, by the Top 26 Wrong since Mar 09 Economists.
Jobless Claims in U.S. Declined 3,000 Last Week in Sign Labor Market Heals
#2. To: Brian S (#0)
(Edited)
Title: Jobless Claims in U.S. Declined 3,000 Last Week in Sign Labor Market Heals
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]