Jobless Claims in U.S. Unexpectedly Climb to Three-Month High of 479,000

[marmar]

Unexpectedly, again. :eyes:



By Bob Willis

Aug. 5 (Bloomberg) -- 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. ..........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aNmRu9_Trax0&pos=1

[earthside]

1. More Good News!

This proves the 'recovery' is happening ... because new unemployment claims are still under 500,000.

The Dow should go up about a hundred points today based on this great news.

But undoubtedly the Cassandras on DU will spin this into something bad.

Taken with the survey that shows underemployment remaining about the same as it was last month, well, things aren't getting much worse.










:sarcasm:

[Mayflower1]

5. Unemployment Rate - tomorrow

What do you think that will be?

[Poboy]

2. No one could have predicted this.

[Starry Messenger]

3. *Who* didn't expect it??

Talk about magical thinking! x(

[valerief]

4. It's unexpected because they'd hoped for 600,000? nt

[CrownPrinceBandar]

6. The "lagging indicator" lags on.........

If it was lagging anymore it would be going in reverse. Oh, wait...