More Americans file jobless claims
By Alan Zibel |
June 18, 2010, Friday
|
Print Edition
Print Edition
THE number of Americans 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, United States Labor Department said yesterday. It was the highest level in a month and overshadowed a report that consumer prices remain essentially flat.
First-time jobless claims have hovered near 450,000 since the beginning of this 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.
"Most market economists have been expecting claims to fall below 450,000 for several weeks now," said Kevin Logan, an economist with HSBC Securities. "The wait is getting longer and longer. 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 fall in the Consumer Price Index was pulled down by falling energy prices - most notably a 5.2 percent drop in gasoline prices. Lower energy bills were the key factor pulling down 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 Federal Reserve's inflation target.
Economists say they will feel more optimistic that the economy is creating jobs once initial jobless claims fall below 425,000 per week.
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 US$8 million.
The number of people continuing to claim benefits rose by 88,000 to 4.57 million. That doesn't include 5.2 million people who receive extended benefits paid for by the federal government.
Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, United States Labor Department said yesterday. It was the highest level in a month and overshadowed a report that consumer prices remain essentially flat.
First-time jobless claims have hovered near 450,000 since the beginning of this 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.
"Most market economists have been expecting claims to fall below 450,000 for several weeks now," said Kevin Logan, an economist with HSBC Securities. "The wait is getting longer and longer. 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 fall in the Consumer Price Index was pulled down by falling energy prices - most notably a 5.2 percent drop in gasoline prices. Lower energy bills were the key factor pulling down 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 Federal Reserve's inflation target.
Economists say they will feel more optimistic that the economy is creating jobs once initial jobless claims fall below 425,000 per week.
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 US$8 million.
The number of people continuing to claim benefits rose by 88,000 to 4.57 million. That doesn't include 5.2 million people who receive extended benefits paid for by the federal government.
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