Following an encouraging weekly Labor Department report in which the rate of new jobless claims dropped to a level not seen in more than a year, overall jobless numbers were announced on Friday. The overall unemployment rate in the U.S. dropped to 10 percent, down from 10.2 percent, taken as a very positive sign before the New York stock market opens. Some believe, however, this might be temporary.
The overall economic trend forecast by economists was that overall jobless figures would continue to climb well into 2010. Most are shaking their head today, but the consensus remains that analysts feel the losses will continue to mount.
The economy lost 11,000 jobs last month, an amazingly large improvement from October's revised total of 111,000, the Labor Department said on Friday. Wall Street economists had expected 130,000 jobs to be shed, an increase from October. Their estimates had also included a stable rate of 10.2 percent, not the drop to 10 percent seen.
The Labor Department also reevaluated its job losses for September, to a loss of 139,000 from 219,000, and for last month, as noted above, to 111,000 from 190,000.
The so-called "real" unemployment or "underemployment" rate also fell. That number includes part-time workers who want full time jobs and laid off workers who have given up looking for work. It fell from 17.5 percent from 17.2 percent in November.
Other news included a rise in the average work week from 33.2 hours. It had been at a record low of 33 hours. Analysts note that companies will raise hours for existing workers before hiring. This is despite the fact that many U.S. workers are feeling the pain of increased productivity, as employers saddle them with more work, rather than hiring, to keep profits up.
Another set of positive news is that temporary services companies added 52,000 jobs. This is the fourth straight monthly increase. Companies are likely to hire temporary workers before adding permanent ones, so this is seen as a positive trend.
Thursday's new jobless figures showed first-time claims for unemployment insurance dropped by 5,000 to a seasonally adjusted 457,000, the lowest in over a year. Economists had expected an increase.
The four-week moving average of new jobless 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.
Written by Michael Santo
HULIQ.com
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