Jobless Claims Decline Sharply Last Week

AP ^ | 10/07/04 | Jeannine Aversa

[Pikamax]

Associated Press Jobless Claims Decline Sharply Last Week Thursday October 7, 2:20 pm ET By Jeannine Aversa, Associated Press Writer Jobless Claims Drop Sharply, Offering Sign That Job Market Recovery May Be Gaining Steam

WASHINGTON (AP) -- The number of new applications filed last week for unemployment benefits fell sharply, offering a hopeful sign that the recovery in the job market may be gaining some steam. The Labor Department reported Thursday that the number of new people signing up for unemployment insurance benefits dropped by a seasonally adjusted 37,000 to 335,000, the lowest level since the beginning of September. In the prior three weeks, claims had gone up.

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The latest snapshot of the layoffs climate was better than economists were expecting. They were expecting claims to decline to around 355,000.

Claims had risen recently in part because of the impact of hurricanes that pummeled Florida and elsewhere, wreaking damage and disrupting commerce.

The more stable, four-week moving average of claims, which smooths out week-to-week fluctuations, rose by 4,250 last week to 348,500. That compares with 394,250 a year ago -- showing improvement has been seen over the past year.

The number of people continuing to draw unemployment benefits declined by 1,000 to 2.86 million for the week ending Sept. 25, the most recent period for which that information is available. A year ago, the number stood at 3.57 million.

The Federal Reserve, citing some improvements in the economy, boosted short-term interest rates for a third time this year in September. Many analysts expect the Fed will increase rates again at its next meeting in November. A few, however, believe the Fed might take a pass in November and raise rates in December, the last meeting of the year.

Sandra Pianalto, president and the Federal Reserve Bank of Cleveland and a member of the Federal Open Market Committee -- the group that sets interest rate policy in the United States -- in remarks Thursday said it is still not clear when the labor market will get back to full throttle.

"As the unemployment data arrives over the next several months, we may very well see the job numbers snap back if confidence in our economy is restored, economies around the world strengthen and energy prices stabilize," Pianalto said. "But it may turn out that the process of job expansion will take more time to gain momentum."

President Bush and his Democratic opponent, John Kerry, paint very different pictures about how the economy and the labor market are faring as they try to woo voters with Election Day just a few weeks away.

Many economists are forecasting a net gain of around 150,000 jobs for September, which would mark a bit of an improvement over the 144,000 jobs added in August. The nation's unemployment rate is expected to hold steady at 5.4 percent.

Even though payrolls have grown by 1.7 million in the last 12 months, the economy is still down by a net 913,000 jobs since Bush took office.

The government releases the employment report for September on Friday. The jobs report, the last to be issued before the Nov. 2 elections, will be closely watched by the presidential campaigns, economists and Fed Chairman Alan Greenspan and his Fed colleagues.

[LowCountryJoe]

So many places to start and elaborate on but I'm going to make an economic decision at this point and not do it. My ego tells me that my time is too valuable to occupy it any further on this dying thread, as you'd be the only one that could potentially benefit from it. And then there's the whole issue of whether or not you'd internalize what I would write if I did make the decision to do so. Needless to say, the costs outweigh the benefits.

So, I'm done bantering with you on this particular thread...I need a drink!

[KC_Conspirator]

...and while we are not getting paid yet...

You need to have a "come to Jesus" meeting with your boss and demand a raise.

[dahvid]

Can't you just leave without laying your ego trip? You are internalizing and projecting upon me, and it serves your ego to part with one dying shot. When you point your finger, look where the other five are pointing. Instead of analyzing me, take a look at yourself instead.

I am simply responding to people that are posting to me on this thread. If that bothers you, tough. I will also quit this thread, this website, and most likely the republican party after seing what the people are really like.

So be it and hoist one for me! Good luck to you LowCountryJoe.

[misterrob]

I do it every morning when I see him in the mirror....

:-)