tommyliu
Newbie
Joined: 31 May 2009
Location: Indonesia
Online Status: Offline
Posts: 4
|
| Posted: 25 June 2009 at 10:21am | IP Logged
|
|
|
U.S. Jobless Claims Rise, Total Benefit Rolls Climb (Update2)
By Courtney Schlisserman
June 25 (Bloomberg) -- The number of Americans filing claims for unemployment benefits unexpectedly rose last week and the total number receiving payments increased, indicating the labor market may take longer to stabilize.
Initial jobless claims rose by 15,000 to 627,000 in the week ended June 20, from a revised 612,000 the week before, the Labor Department said today in Washington. The number of people collecting unemployment insurance gained by 29,000 in the prior week, to 6.74 million.
Recent economic data shows some areas of the economy, such as housing and manufacturing, are seeing a smaller pace of decline, and the Federal Reserve said yesterday after a two-day meeting in Washington that the economy’s slump is “slowing.” Even so, companies have been loath to hire new employees, in part because they are waiting for sustained gains in demand.
Today’s report is “just a reminder that the labor market is still in serious trouble and the unemployment rate will continue to increase into 2010,” said Ryan Sweet, an economist at Moody’s Economy.com in West Chester, Pennsylvania. While the trend in recent weeks shows a slower pace of claims, “hopes for a quick rebound in the labor market are overly optimistic.”
A separate government report today showed U.S. gross domestic product shrank at a 5.5 percent annual pace in the first quarter, less than the 5.7 percent pace previously estimated. The change was spurred by a smaller trade deficit, Commerce Department figures showed.
Treasuries, Stocks
Treasuries initially rose after the jobless figures, then surrendered the gains, with benchmark 10-year note yields at 3.68 percent at 9:04 a.m. in New York, from 3.69 percent late yesterday. Futures on the Standard & Poor’s 500 Stock Index were down 0.6 percent at 892.30.
Economists had forecast claims would fall to 600,000, according to the median of 41 estimates in a Bloomberg News survey, from a previously reported 608,000 a week earlier.
The four-week moving average of initial claims, a less volatile measure, rose to 617,250 from 616,750.
The jobless rate among people eligible for benefits held at 5 percent in the week ended June 13. The June 13 data coincides with the week Labor conducts its monthly payrolls survey, which the department is due to report on July 2.
Thirty-six states and territories reported a decrease in new claims for the week ended June 13, while 17 had an increase. Some states that don’t ordinarily report layoffs related to the end of the school year reported larger than expected job losses in education services, the Labor Department said, declining to be specific.
Bankruptcies at General Motors Corp. and Chrysler Group LLC may also inflate benefit rolls for weeks to come.
|
KLGreetings.com : Stock Market
Topic: U.S Jobless Rate Climbs Up Further
