A recent increase in new claims for unemployment to 462,000, is dampening hopes of a happier US jobs outlook.
"The gain put an end to two straight declines and reinforced that the labor market recovery is not going to come about quickly," Andrew Gledhill of Moody's Analytics stated on Thursday.
Claims increased by 13,000 up to 462,000, the second increase in two months, from last week's revised 449,000 for the week ended Oct. 9, the Labor Department reported Thursday.
The figures have hovered around 450,000 for most of the year, and hiring hasn't picked up enough pace to make a dent in the 9.6 percent unemployment rate.
For the unemployment rate to decrease, the economy needs jobless claims to drop into the low 400,000s or high 300,000s, to reflect stronger job growth in the private sector and propel the recovery. This means that 50,000 to 70,000 a month would need to be hired within the nationwide job market, to make a decent dip in the unemployment rate.
The four-week moving average, which recite the volatility of the weekly number and provides a better gauge of the employment situation; rose by 2,250 to 459,000.
In contrast, the total number of people continuing to receive unemployment insurance fell by 112,000 in the week ended October 2, to 4.4 million, the lowest since November 2008.
Those receiving extended benefits — up to 99 weeks in some states — who have exhausted their traditional benefits, decreased by about 340,000 to 4.8 million in the week ended Sept. 25, the latest data available.
The recession, starting in 2007 -has left the US with a long-term unemployment rate – a measure of those without work for more than six months – of 4.5 percent, almost double that of the 1980s and 1990s downturns.
On September 30, S.3706-"The Americans Want to Work Act" bill -which would have extended up to 20 weeks of benefits to the 99ers - was blocked from an up or down vote on the Senate floor by Senator George LeMieux (R-FL). LeMieux cited concerns on future debt ratios, for his reasoning in blocking the bill.
Current unemployed benefits claimants under the 99 weeks, receiving benefits from H.R.-4213, which President Barack Obama, signed into law on July 22, will be exhausted of their supplemental income payments on November 30. Current claimants will not be allowed to receive continuing benefits from their current Tiers I-V or, move onto the next Tier of extended payments.
The private sector added 64,000 jobs in September, while overall the economy lost 95,000, as the jobless rate held at 9.6 percent, according to the Labor Department's report on Oct. 8.
This latest rise in benefit claims comes only a couple of weeks after the Organization for Economic Co-operation and Development (OECD) warned that long term unemployment could be a reality for many Americans.
Meanwhile the stock market is reacting to the uncertainly in the unemployment rate, across the country. U.S. stock-index futures erased gains after initial jobless claims unexpectedly increased and wholesale costs rose at a pace that suggests limited demand is restraining inflation, yesterday afternoon.
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Comments
Test comment
I do not understand what this means:
Those receiving extended benefits — up to 99 weeks in some states — who have exhausted their traditional benefits, decreased by about 340,000 to 4.8 million in the week ended Sept. 25, the latest data available.
Even though those who have received long term unemployment benefits decreased (which is true) it is NOT because they have found employment. It is because they have exhausted all benefits available. In other words, these job seekers are without any necessary income to pay for their daily living needs.
I hope that helps!
Thanks Monica. I was pretty sure that's what you meant, but if a person was not familiar with how unemployment and the numbers work (like all of us unemployed are), it could be taken as the number of unemployed has decreased.
I am on unemployment and if I can't find a job by November 1st my extension will then begin... Tier One. Based on this bill...Current claimants will not be allowed to receive continuing benefits from their current Tiers I-V or, move onto the next Tier of extended payments... Does this mean that after November 30th I will not get any more benefits even if I qualify to continue receiving benefits under Tier One?
Thanks for your question. If you are on Tier I in Michigan, you will continue to receive your initial state funded 26 weeks, until they are completed. You will not be allowed to move to Tiers II-V, unless Congress extends Federal Unemployment benefits. Hope that helps!
That means that a lot of us will have exhausted their unemployment benefits and will lose our apartments, homes, etc. at the end of November, right before Christmas and will end up out in the street. I am still looking for work. Thanks
Not true. November 30th is the latest date at which a new claim can be filed, but you will continue to get paid on that claim until the balance is zero. It will not stop at November 30th unless you are on the FED-ED, which is the screwy tier.
Let me clarify. As long as you begin a tier, except the FED-ED, before or on Nov 30th, you will continue to receive payments on that new tier until the balance is zero.
Who ever you are, ALL benefits EXCEPT for State Funded Unemployment Expires on November 30. That is the initial 26 weeks. To say ANYTHING else to these individuals is untruth. Also, comments without a name that is counter to my article, will be deleted. Thanks for your visit.
I have been unemployed since April 28 2010. I believe in Illinois unemployment runs for 26 weeks until you go to extended benefits. I have not been able to find work so this means If I go on entended benfits in November it will end on 12/04/2010 and I will be with out any income.
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