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U.S. unemployment aid applications show decline

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The number of Americans applying for unemployment benefits fell by 23,000 last week, further evidence that the job market is showing some improvement.

Applications for unemployment aid declined to a seasonally adjusted 340,000 in the week ending May 18, the Labor Department said Thursday. That’s down from 363,000 the previous week and a level consistent with some job gains.

The less volatile four-week average ticked down just 500, to 339,500. That’s close to the five-year low of 338,000 reached during the first week of May. The four-week average is 9 percent lower than in November.

“The underlying story in jobless claims continues to be one of gradual improvement,” Bricklin Dwyer, an economist at BNP Paribas, wrote in a research report.

Unemployment claims are a proxy for layoffs. The decline in claims has coincided with steady job growth over the past six months. Since November, employers have added an average 208,000 jobs a month. That’s up from just 138,000 jobs a month during the previous six months.

Still, much of the improvement has come from fewer layoffs, not robust hiring. Employers laid off just 1.7 million workers in March, only slightly above the 12-year low reached in January. Overall hiring, however, remains far below pre-recession levels.

More than 4.7 million Americans were receiving unemployment benefits the week that ended May 4, down 23 percent from nearly 6.2 million a year earlier.

The United States still has 2.6 million fewer jobs than it did when the recession began in December 2007. The unemployment rate has fallen to a four-year low of 7.5 percent, down from 10 percent in October 2009. Some of the decrease is because many people have given up looking for work. The government counts people as unemployed only if they are actively searching for a job.

For hiring to strengthen enough to lower the unemployment rate to a more normal level of between 5.5 percent and 6 percent, companies must gain more confidence in the economy. But some may be hesitant to add workers because of concerns of deep federal spending cuts and tax increases.

Federal Reserve Chairman Ben Bernanke told a congressional committee Wednesday that the job market is improving, but that higher taxes and government spending cuts likely will slow economic growth this year.

Bernanke said it was too early for the Fed to abandon its extraordinary efforts to boost economic growth. The Fed says it plans to keep its short-term interest rates near zero until unemployment is below 6.5 percent. And it is buying $85 billion a month in Treasury and mortgage bonds to push down longer-term interest rates.

The Fed’s low interest-rate policies are intended to encourage more borrowing and spending, which boosts economic growth.
 

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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