IBJNews

Weekly U.S. unemployment claims remain high

Back to TopCommentsE-mailPrintBookmark and Share

The number of Americans seeking unemployment benefits fell only slightly last week, to a seasonally adjusted 382,000. The level suggests hiring remains weak.

The Labor Department said Thursday that applications declined by 3,000 from the previous week, which was revised up. The four-week average, a less volatile measure, rose for the fifth straight week, to 377,750, the highest level in nearly three months.

Applications were skewed higher two weeks ago by the fallout from Hurricane Isaac. But a Labor Department spokesman said there were no special factors last week.

Weekly applications are a proxy for layoffs. When they consistently fall below 375,000, it typically suggests hiring is strong enough to lower the unemployment rate.

Employers added only 96,000 jobs last month, below the 141,000 in July and much lower than the average 226,000 added in the first three months of the year. Recent job gains are barely enough to keep up with the growth of the working age population and aren't enough to rapidly drive down unemployment.

"Businesses clearly remain reluctant to aggressively boost their workforces," said Jim Baird, chief investment strategist at Plante Moran Financial Advisors, in a note to clients.

The unemployment rate dropped in August, to 8.1 percent from 8.3 percent. But that was only because fewer people were looking for work. The government only counts people as unemployed if they are actively looking for work.

The number of people receiving unemployment aid fell sharply earlier this month. About 5.2 million people received benefits the week ending Sept. 1, the most recent data available. That's a drop of about 220,000 from the previous week.

The economy isn't growing fast enough to support much more hiring. It grew at a tepid 1.7-percent annual rate in the April-June quarter, down from 2 percent in the January-March quarter and 4.1 percent in the final three months of last year.

Growth isn't likely to get much better for the rest of this year. Economists expect the economy to grow at a roughly 2-percent pace.

High unemployment and sluggish growth prompted the Federal Reserve last week to announce several major steps to attempt to boost the economy. Chairman Ben Bernanke said the Fed will buy $40 billion of mortgage-backed securities a month until there is "substantial" improvement in the job market.

Bernanke said at a news conference that high unemployment is "a grave concern" that causes "enormous suffering."

ADVERTISEMENT

  • really??
    and there are people out there who are still going to vote Obama???? the guy isn't getting it done! And now we have Bernanke basically saying the TARP hasn't created jobs so now we're just going to keep spending and if the first 40 billion doesn't work...we'll just keep buying until it does. This frustrates the daylights out of me how people can look at the last four years and think that Obama is better than a guy who has experience turning around companies. Forget the likeability factor people. We're electing someone to turn the economy around. not someone who makes promises on Letterman. Has anyone ever been employed by someone who was poor? yet for some reason Obama supporters think that taking business owners money will help the poor and create jobs? The whole idea that Obama helps the poor and Romney is for the rich is fabricated by a liberal media.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

ADVERTISEMENT