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Weekly U.S. unemployment claims remain high

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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."

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  • 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.

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  1. Saw the Indy Men's Chorus "Music of Gilbert & Sullivan" at the Indiana Historical Society on Sunday evening.

  2. Temporary workers are not "tools" they are people and companies that keep large amounts of temp staff are cheating.

  3. I miss having them around. I hope one of their stores is in the general Meridian/86th Street area. I will make good use of it.

  4. The Fringe! Plus, the simple fact that there are so many local faves in such close proximity to each other.

  5. I remenber, watching the toll road, being built, through South Bend, when I was 10 years old. I believe, back then that it was estimated, that the toll road, would be paid for in 20 years and then it would be free. I am now 71, what happened? Since the power is in the people, by that, I mean that, we the people are in total control of everything. I, suggest that no one ever use the toll road again, let it go broke. We the people can control the price of everything, from groceries to gas, if we would just do it. If we don't pay the asking price, the sellers will lower the price and if we wait awhile, they will lower the price to what we accept as reasonable. I would like to know why a highway like interstate 94, is so well maintained, a much better highway, than the toll road, but has no tolls. I would also like to know why, a sitting governor, with a term limit, maximum of eight years, can lease, public property, for 75 years. Even though I have transponders in both of my trucks and will not be affected by the increase, I have been and will contine to avoid using the toll road. I make many trips from northern Indiana to Chicago, every year, and I prefer the better highway, I94!

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