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Weekly unemployment applications rise to 372,000

Associated Press
January 3, 2013
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More Americans sought unemployment benefits last week, though the winter holidays likely distorted the data from the U.S. Labor Department for the second straight week.

The Labor Department said Thursday that weekly applications rose by 10,000, to a seasonally adjusted 372,000, in the week ended Dec. 29. The previous week’s total also was revised higher.

Many state unemployment offices were closed this week for the New Year’s holiday and did not submit complete data for last week. As a result, the department relied on estimates for nine states. Two weeks ago, the department estimated 19 states because of Christmas closings.

In a typical week, the government estimates only one or two states.

The broader trend has been favorable. The four-week average, a less volatile measure, was little changed at 360,000. That’s only slightly above the previous week’s 359,750, which was the lowest in more than four years.

Weekly applications are a proxy for layoffs. They have mostly fluctuated this year between 360,000 and 390,000. At the same time, employers have added an average of 151,000 jobs a month in the first 11 months of 2012.

The government will release the December’s jobs report Friday. Economists forecast it will show employers added about 150,000 jobs last month, barely enough to lower the unemployment rate.

A separate report Thursday offered some hope that the job figures could be a little higher. Payroll provider ADP reported that businesses added 215,000 jobs last month, much higher than November’s total of 148,000.

Hiring surged behind a jump in construction jobs that were added in part to help rebuild from Superstorm Sandy.

ADP’s report covers hiring in the private sector and does not include government jobs. It has frequently diverged from the government’s report. Still, some economists were encouraged by the survey and also by the latest unemployment applications figures.

A few even raised their forecasts for Friday’s report. Jonathan Basile, an economist at Credit Suisse, said he now expects employers added 185,000 jobs last month, up from 165,000.

“The latest round of labor market data are, on balance, positive,” Paul Ashworth, an economist at Capital Economics, said.

Unemployment remains high and companies are reluctant to ramp up hiring. The unemployment rate fell to 7.7 percent in November from 7.9 percent in October mostly because many of the unemployed stopped looking for jobs. The government counts people as unemployed only if they are actively searching for work.

The number of people receiving benefits fell to 5.4 million in the week ended Dec. 15, the latest data available. That’s down about 70,000 from the previous week. The figure includes about 2.1 million people receiving emergency benefits paid for by the federal government. The White House and Congress agreed earlier this week to extend that program for another year.

Companies may hire more in the coming months now that President Barack Obama and Congress have reached agreement to avoid most of the tax increases and spending in the fiscal cliff. But more battles over taxes and spending are likely in the coming weeks, which could keep companies cautious about adding jobs.

There are signs the economy is improving. The once-battered housing market is recovering, which should lead to more construction jobs in the coming months. Companies ordered more long-lasting manufactured goods in November, a sign they are investing more in equipment and software. And Americans spent more in November. Consumer spending drives nearly 70 percent of economic growth.

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

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  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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