U.S. Jobless Claims Hover at Pre Recession Levels

[Stuart G]

Source: Reuters

By Lucia Mutikani

WASHINGTON Thu Apr 17, 2014 8:59am EDT


(Reuters) - New applications for unemployment benefits held near their pre-recession levels last week, offering further evidence of the economy's underlying strength.

Initial claims for state unemployment benefits ticked up 2,000 to a seasonally adjusted 304,000 for the week ended April 12, the Labor Department said on Thursday. They stayed close to a 6-1/2 year low touched the prior week.

Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 315,000.

U.S. Treasury yields hit session highs on the data, while stock index futures and the dollar were little changed.


Read more: http://www.reuters.com/article/2014/04/17/us-usa-economy-idUSBREA3F0U920140417

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[pipoman]

1. Uh...how many were kicked off of unemployment in December again?

Forgive me for my incredulity. ..

[JoePhilly]

2. Um, it says "New applications".

[pipoman]

4. There would be a reduction in new applications if

As I suspect, there are millions of people unable to claim. The stats are clay...

[JoePhilly]

6. You are mixing up different metrics that have different purposes.

There is a metric for "New applications". It is one of the measures used to help determine how many people lost their job in the prior month or so. It is not a measure of the long term unemployed.

There is another metric for "unemployed people receiving benefits" and still another for "unemployed people who are not eligible for benefits".

There is also a metric for "total number of people receiving unemployment".

Bottom line: The people you are talking about, those who have been unemployed so long that they are no longer eligible, are not newly unemployed. They have no effect on "New applications".

[MannyGoldstein]

3. I share your general incredulity, but...

This is only a measure of how many lost their jobs recently. The monthly total unemployment numbers are where the magic is done of transforming the hopeless into "retirees" or "economic patriots" or whatever they're called these days by Republicans and the Sensible Set.

[MannyGoldstein]

5. So things are no longer getting worse?

That would be nice.

Then there's this huge, huge hole we need to start filling...

[area51]

12. +1 n/t

[uberblonde]

7. The economy's "strength"....

Comes from the fact that the jobs people do have now are a lot harder (because you're doing the job that several people used to do) and most of them pay a lot less.

But other than that, hooray. Whoopee.

Let's not forget that the economy was doing bad for a long time before it all crashed, so let's not be reassured just yet.

[tofuandbeer]

8. +1

[cabrona]

9. "Strength" = profitability.

That's how the Reuters writer understands economics.

[bossy22]

10. a company in the "black" is more likely to higher than a company in the "red"

the economy is strengthening, but it has quite a way to go

[cabrona]

11. "Hire."

A company will hire exactly as many employees as it needs, and no more, however much its profitability increases.