The number of recently laid-off workers filing claims for unemployment benefits increased for the second week in a row, an unexpected turn among the optimism following last month’s decrease in the nation’s unemployment rate, and an indication that the number of available jobs remains scarce.
Today the Department of Labor announced there were 576,000 jobless claims last week, an increase of 15,000 from the 561,000 claims filed the previous week. According to a survey by Thomson Reuters, Wall Street initially predicted a decline to 550,000 jobless claims from a previously reported 558,000 claims.
That brings the four-week average of initial claims, which also increased for the second straight week, to 570,000. There are currently 6.24 million people remaining on the benefit rolls, a decrease of 2,000.
Earlier this month, the Department of Labor said that companies cut 247,000 jobs during July, the smallest amount in nearly a year. On top of that, the national unemployment rate declined from 9.5 percent to 9.4 percent during July, the first decrease in 15 months.
However, several economic experts have predicted that the unemployment rate could exceed 10 percent by next year. Since December 2007, the country has lost a net total of 6.7 million jobs.
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August 20th, 2009 at 10:51 am
“Unexpected”? Sure the general media bases their expectations on the last months data. Is that practical? No. None of the fundamentals in any industrial sector or the economy have changed. The key is average hours worked per week and overtime (specifically). When you see those going up, that will be a harbinger of good things to come.
August 20th, 2009 at 12:22 pm
I have heard some unverified statistics (in other words…rumors) that the unemployment rate for the college age group (18-24) is up to 16%. Another source (rumor mill) suggest that the 16% represents college graduate only.
Any insight in your research that you have found, RE: College grads/unemployment rate?
We have found that things are picking up, however confidence is still lagging hence hiring decisions are being delayed. I believe companies are hoping to squeeze every once of productivity out of its workers.