WASHINGTON: The number of Americans filing new claims for jobless benefits unexpectedly rose last week, suggesting the labor market is healing too slowly to make much of a dent in the unemployment rate.
Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 372,000, the Labor Department said on Thursday.
That was the highest level in five weeks. The data keeps pressure on President Barack Obama ahead of his November re-election bid.
His Republican challenger is trying to focus voters' attention on a lofty unemployment rate that has dogged Obama's presidency.
Many economists think the Federal Reserve could unveil a new bond buying program to prop up economic growth as soon as its next meeting Sept 12-13, although an improvement in hiring this month could make that less likely.
The report on jobless claims did have a silver lining, however. The data covers the same week looked at by the government for its monthly measure of employment, and showed a slight drop in layoffs from the survey week last month, which is a mildly positive signal for hiring in August.
The four-week moving average for new claims, a measure of labor market trends, was 368,000 last week. That was a slight increase from the prior week, but still 2.1 per cent lower than in the second week of July.
That week, the government surveyed employers and concluded 163,000 new jobs were created in July - an improvement from the prior three months though the unemployment rate still ticked higher to 8.3 per cent.
The government will release its employment report for August on Sept. 7, and policymakers at the Federal Reserve will scrutinize the data for signs the economy is improving.
Minutes from the Fed's July 31-Aug. 1 policy review, released on Wednesday, showed the central bank is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably.
Claims data, which swung wildly in July due to shifts in seasonal auto plant shutdowns, are now giving a clearer picture of the labor market's health.
indiatimes.com
Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 372,000, the Labor Department said on Thursday.
That was the highest level in five weeks. The data keeps pressure on President Barack Obama ahead of his November re-election bid.
His Republican challenger is trying to focus voters' attention on a lofty unemployment rate that has dogged Obama's presidency.
Many economists think the Federal Reserve could unveil a new bond buying program to prop up economic growth as soon as its next meeting Sept 12-13, although an improvement in hiring this month could make that less likely.
The report on jobless claims did have a silver lining, however. The data covers the same week looked at by the government for its monthly measure of employment, and showed a slight drop in layoffs from the survey week last month, which is a mildly positive signal for hiring in August.
The four-week moving average for new claims, a measure of labor market trends, was 368,000 last week. That was a slight increase from the prior week, but still 2.1 per cent lower than in the second week of July.
That week, the government surveyed employers and concluded 163,000 new jobs were created in July - an improvement from the prior three months though the unemployment rate still ticked higher to 8.3 per cent.
The government will release its employment report for August on Sept. 7, and policymakers at the Federal Reserve will scrutinize the data for signs the economy is improving.
Minutes from the Fed's July 31-Aug. 1 policy review, released on Wednesday, showed the central bank is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably.
Claims data, which swung wildly in July due to shifts in seasonal auto plant shutdowns, are now giving a clearer picture of the labor market's health.
indiatimes.com
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