Snowstorms in US push up new claims for jobless benefits
Source: Agencies |
January 28, 2011, Friday
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NEW claims for jobless benefits among Americans surged last week as snowstorms in some parts of the United States kept workers at home, but the underlying trend pointed to an only gradual labor market improvement.
Initial claims for state unemployment benefits jumped 51,000 to a seasonally adjusted 454,000, the highest since late October, the US Labor Department said yesterday. That was the largest weekly increase since September 2005. The rise exceeded economists' expectations for a slight gain to 405,000.
A department official said four states had seen a rise in claims due to snow. In addition, he said, seasonal volatility also affected the data.
Still, the four-week moving average of jobless claims - a better measure of underlying trends - rose 15,750 to 428,750 last week, implying a gradual labor market recovery that could compel the Federal Reserve to complete its US$600 billion bond buying program aimed at bolstering the economy.
"I'll buy that it can be blamed on the weather. But it does show that the recovery is growing in fits and starts," said Peter Tuz, president at Chase Investment Counsel in Virginia.
A separate report from the Commerce Department showed a nearly 100 percent drop in civilian aircraft orders led to orders for long-lasting manufactured goods dropping 2.5 percent in December. Economists had expected orders to rise 1.5 percent.
However, orders, excluding transportation, rose 0.5 percent and a proxy for business spending increased 1.4 percent, indicating the economic recovery was still gaining some momentum, though not sufficient to help the labor market.
The labor market recovery remains painfully slow, despite signs elsewhere of a pick-up in economic activity, keeping the unemployment rate at an elevated 9.4 percent.
Fed officials on Wednesday acknowledged the improvement in the economic picture, but said the pace of the recovery remained "insufficient to bring about a significant improvement in labor market conditions."
The number of people still receiving benefits under regular state programs after an initial week of aid rose 94,000 to 3.99 million in the week ended January 15. The numbers were above market expectations for a dip to 3.85 million and included the week for the household survey from which the jobless rate is derived.
The prior week's number for the so-called continuing claims was revised up to 3.9 million from 3.86 million.
The number of people on emergency unemployment benefits rose 63,886 to 3.78 million in the week ended January 8, the latest week for which data is available.
Initial claims for state unemployment benefits jumped 51,000 to a seasonally adjusted 454,000, the highest since late October, the US Labor Department said yesterday. That was the largest weekly increase since September 2005. The rise exceeded economists' expectations for a slight gain to 405,000.
A department official said four states had seen a rise in claims due to snow. In addition, he said, seasonal volatility also affected the data.
Still, the four-week moving average of jobless claims - a better measure of underlying trends - rose 15,750 to 428,750 last week, implying a gradual labor market recovery that could compel the Federal Reserve to complete its US$600 billion bond buying program aimed at bolstering the economy.
"I'll buy that it can be blamed on the weather. But it does show that the recovery is growing in fits and starts," said Peter Tuz, president at Chase Investment Counsel in Virginia.
A separate report from the Commerce Department showed a nearly 100 percent drop in civilian aircraft orders led to orders for long-lasting manufactured goods dropping 2.5 percent in December. Economists had expected orders to rise 1.5 percent.
However, orders, excluding transportation, rose 0.5 percent and a proxy for business spending increased 1.4 percent, indicating the economic recovery was still gaining some momentum, though not sufficient to help the labor market.
The labor market recovery remains painfully slow, despite signs elsewhere of a pick-up in economic activity, keeping the unemployment rate at an elevated 9.4 percent.
Fed officials on Wednesday acknowledged the improvement in the economic picture, but said the pace of the recovery remained "insufficient to bring about a significant improvement in labor market conditions."
The number of people still receiving benefits under regular state programs after an initial week of aid rose 94,000 to 3.99 million in the week ended January 15. The numbers were above market expectations for a dip to 3.85 million and included the week for the household survey from which the jobless rate is derived.
The prior week's number for the so-called continuing claims was revised up to 3.9 million from 3.86 million.
The number of people on emergency unemployment benefits rose 63,886 to 3.78 million in the week ended January 8, the latest week for which data is available.
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