Thread: New jobless claims up sharply as layoffs persist

New jobless claims up sharply as layoffs persist
By ALAN ZIBEL (AP)
http://www.google.com/hostednews/ap/art ... wD9GD4E9G0

WASHINGTON — The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed.

Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. It was the highest level in a month and overshadowed a report that showed consumer prices remain essentially flat.

A rise in first-time jobless claims, combined with this week's report that said new home construction plunged in May after government incentives expired, highlighted fears about the strength of the economic rebound.
If layoffs persist, there's a concern that the June employment numbers may show a decline in private-sector jobs after five straight months of gains, said Jennifer Lee, an economist with BMO Capital Markets.

"We've definitely seen the economic recovery hit a wall," Lee said.
First-time jobless claims have hovered near 450,000 since the beginning of the year after falling steadily in the second half of 2009. That has raised concerns that hiring is lackluster and could slow the recovery.
The four-week average for unemployment claims, which smooths volatility, dipped slightly to 463,500. That's down by 3,750 from the start of January.

Kevin Logan, an economist with HSBC Securities, said many economists have been expecting claims to fall below 450,000 for several weeks now.
"The wait is getting longer and longer," said Logan. "As each week goes by, doubts about the underlying strength of the economic expansion grow."

A separate Labor report said consumer prices fell for the second straight month. The 0.2 decline in the Consumer Price Index was pulled down by falling energy prices — most notably a 5.2 percent drop in gasoline prices.
But core consumer prices, which strip out volatile energy and food, edged up 0.1 percent in May, after being flat in April. Core prices are up only 0.9 percent over the past year — below the Fed's inflation target.
Additionally, the Commerce Department said Thursday that the broadest measure of U.S. trade rose during the first quarter to the highest point in more than a year. Much of the widening deficit was due to higher prices on imported oil during the first three months of the year. Those prices have since come down.

And a private research group said its gauge of future economic activity rose 0.4 percent in May, signaling slow growth in the U.S. economy through the fall. Turmoil in stock markets and a troubled housing market weighed on the Conference Board's leading economic index, while measures related to interest rates and an increasing amount of money in the economy tugged it higher. The index is designed to forecast activity in the next three to six months.

Still, layoffs remain one of the biggest concerns for the recovery. Just this week, casino owner Wynn Resorts laid off more than 260 workers in its two Las Vegas casino hotels in a move expected to save nearly $8 million.
Economists have said they don't expect to see sustained job creation until first-time jobless claims drop below 425,000 per week.
But Julia Coronado, senior U.S. economist with BNP Paribas in New York, said she expects they will actually stabilize at around 450,000. That's because weaker segments of the economy are shedding jobs while stronger sectors are hiring.

The number of people continuing to claim benefits rose by 88,000 to 4.57 million. That doesn't include about 5.2 million people who receive extended benefits paid for by the federal government.
Congress has added 73 weeks of extra benefits on top of the 26 weeks typically provided by states. All told, about 9.7 million people received unemployment insurance in the week ending May 29, the most recent data available.

The extended benefit program expired this month. The House has approved an extension of the benefits through November. The Senate has yet to act.

On Wednesday, Senate Republicans and a dozen Democratic defectors rejected a catchall measure combining jobless aid for the long-term unemployed, aid to cash-strapped state governments and the renewal of dozens of popular tax breaks. Despite the loss, Democratic leaders predicted that a scaled-back version of the measure could pass, possibly later this week.

Adding to worries about the job market, the Labor Department said earlier this month that the economy generated only 41,000 private-sector jobs in May. That was down from 218,000 in April.

Temporary hiring by the Census Bureau added another 411,000 jobs. The unemployment rate fell to 9.7 percent from 9.9 percent.

My Two Cents on Illegal Aliens and HIGH Unemployment:

Currently, according to the Bureau of Labor Statistics, the U6 Unemployment Rate (TRUE unemployment rate) is 17% nationally. Let me explain, in the 1980s how the national unemployment rate was reported was changed. Steps were made up with the reported step of U3 rate (now 9.7%) being people unemployed for LESS THAN 6 months. The U6 rate is ALL unemployed people which prior to 1980 was the reported figure, today the U3 is used to report unemployment. But the FACT is national unemployment is 17%. That means 1 in 5 American Citizen Voters are out of work! The words appalling and devastating do not begin to picture the damage and problem to our nation that this means.

I support Tier 5 and extended unemployment benefits for the 17% unemployed voters - 17% is the U6 TRUE unemployment rate and the economy is NOT growing for them. I oppose illegal aliens taking American jobs, illegal alien citizenship and guest workers, anchor babies, and chain migration -- all of which take American jobs, especially devastating low income and minority communities and robbing native-born Americans of much-needed jobs during these tough economic times. Congress and President Obama pass 1.2 TRILLION dollar UNFUNDED war extension funding without so much as a debate -- and yet feign caring about the deficit when help for destitute American workers is discussed. Such hypocrisy has not gone unnoticed by the American People who have been VOTING their displeasure as a warning to politicians in Washington DC.


Congress and President Obama choose to reward law breaking illegal aliens, while punishing the formerly hard working unemployed devastated by greedy tycoons and politicians. Unemployed benefits are bare bones survival for people with NO OPTIONS. The average unemployed weekly benefit is $255, compare that to Congressional weekly pay of $3,173! That means members of Congress earn more in a week than unemployed receive in 3 months! Why does Congress refuse to add more weeks of benefits to people who are left behind, while spending unfunded TRILLIONS on a 9 year UNSUCCESSFUL WAR effort? Unemployed are unemployed due to lack of jobs, and not their own misdeeds.


Numerous economists including Geickner, predict that long term unemployment will remain high through 2012. Federal Reserve Chairman Ben S. Bernanke said the U.S. recovery probably won’t quickly bring down the unemployment rate, which is likely to stay “high for a while.â€

Wait a minute........wasn't Obama just on TV a few weeks ago claiming the economy was showing signs of turning around because the unemployment rate was dripping slightly?

The Work Visas are still going out for foreign labor as Americans are removed from jobs. We are being displaced from our own country...lol sad

And our fearless leader Obama, in addition to challenging Arizona's illegal immigration law (SB1070) also has asked the Supreme Court to overturn the liberal 9th Circuit Court of Appeals unanimous ruling to let stand Arizona's law requiring e-verify for all employers. Obama and the congress support dramatically increasing the number of H and L cheap labor visas despite hundreds of thousands of unemployed high tech and other workers. In light of all this is this really an administration who cares about unemployed, suffering and struggling Americans.? From where I sit obviously not............

LoL yes BigTex they are crowing this month about a "dip" in under 6 month unemployment rate. Let's see, January 2010 U3 9.5%, February 2010 U3 9.6%, March 2010 U3 9.7%, April 2010 U3 9.9%, May 2010 U3 9.7% because of 400,000 temporary census jobs being added! Bingo says OBAMA and the Democrats unemployment is dipping LOL.

By the way during this entire time.. from January 2010 through May 2010 the U6 -- which is the REAL unemployment rate -- has gone from 16.5% to 17%. Additionally the MEAN income in the United States has DROPPED dramatically that means ALL people are making LESS money. That is NOT economic recovery -- and OBAMA propaganda is not helping real recovery anymore that George Bush and McCain and Cheney stopped the recession with their "the economy is basically sound" bullsheet.

Recent polls say that United States Citizens are MOST concerned about the economy and unemployment. Want to boost the economy and end unemployment? THEN DEPORT ALL ILLEGAL ALIENS AND STOP ALL GUEST WORKER PERMITS!