The Labor Department released its new jobless figures on Thursday, and the numbers dropped unexpectedly. While analysts continue to call the recover a jobless one, the figures show a possible moderation in job cuts, in the wake of the worst recession in decades.
First-time claims for unemployment insurance dropped by 5,000 to a seasonally adjusted 457,000. This is the lowest total in over a year, since the week of Sept. 6, 2008. Economists had expected an increase, according to a survey by Thomson Reuters. However, the Labor Department was quick to note that the figures were lessened somewhat by the closure of unemployment offices for the Thanksgiving holiday.
The new jobless claims remain above the number that economists say is necessary to signal new hiring. The figure quoted by many analysts is about 425,000 new weekly jobless claims, for at least a month, if the economy were to signal that employers are hiring. The overall U.S. unemployment rate is at 10.2 percent and is expected to keep climbing well into 2010.
The four-week moving average of claims, which levels out spikes and fluctuations, dropped for the 13th straight week. The figure is now at 481,250. This number is 180,000 below its peak for the current recession which was reached this spring.
However, the figures for continuing unemployment claims week rose by 28,000 to 5.5 million, the department said. Analysts had expected a decline. That number, as many are quick to point out, does not include those who are underemployed or who have left the job market, discouraged.
The Labor Department is scheduled to released their employment report for November on Firday. That report is expected by analysts to show that the U.S. economy shed another 130,000 jobs after cutting 190,000 in October. Economists forecast that the unemployment rate will remain at 10.2 percent.
Written by Michael Santo
HULIQ.com
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