Posted on 09/20/2007 5:54:59 AM PDT by Toddsterpatriot
Applications for Unemployment Benefits Show Unexpected Drop
WASHINGTON (AP) -- The number of laid-off workers filing claims for unemployment benefits fell to the lowest level in seven weeks, an unexpected sign of improvement for the jobs market. The Labor Department reported Thursday that new applications for unemployment benefits totaled 311,000 last week, a drop of 9,000 from the previous week. It marked the lowest level for jobless claims since July 28.
The decline came as a surprise for economists who had been forecasting a rise in claims of around 6,000.
The four-week average for claims, which smooths out some of the volatility, also showed an improvement, falling to 320,750 from 324,250 the previous week.
The labor market is being closely monitored for any signs that recent turmoil in financial markets and a deepening slump in housing are causing serious problems for the overall economy. Analysts believe the risks of a recession have risen significantly.
To ward off a possible downturn, the Federal Reserve on Tuesday cut a key interest rate by a half point. It was the first reduction in the federal funds rate in more than four years and was double the quarter-point change many analysts had expected.
The rate cut occurred after a report earlier this month showed that businesses cut 4,000 jobs from their payrolls in August. It was the first monthly job loss in four years, led by sharp declines in manufacturing as well as construction, which has suffered from the worst downturn in housing in 16 years.
For the week ending Sept. 8, a total of 34 states and territories reported declines in the number of people filing jobless claims while 19 reported increases.
The biggest declines were in California, a drop of 4,349, reflecting fewer layoffs in construction and trade industries, and Texas, which had a drop of 2,470 that officials attributed to fewer layoffs in finance and manufacturing. Other big declines were in New York, Florida, Wisconsin and Kentucky.
States with big increases were Michigan, up 1,741, reflecting rising layoffs in the auto industry, and Georgia, up 1,268, reflecting higher layoffs in the textile and other manufacturing industries.
Ping!
Is it mandatory for all good economic news to have the word “surprise” in the headline?
We may have a new model - with construction contracting we should see unemployment rise, however, with construction using so many illegals, when construction slows the illegals can’t claim unemployment. This may be a neat side benefit of illegal immigration.
When a Republican is president, of course.
That’s the way Martin likes it.
The Great Depression is just around the corner, if only we had Hillary to save us....
Bad news for the Democrats.
Or not.
If only it would reduce the number of doom-and-gloom posts on FR ...
It is. You know, if you or I were ‘surprised’ in our work projections or budget projections as much as these boobs, we’d be out of a job. And you’d think any decent media outlets would QUIT USING these people who can never seem to predict things accurately.
Just more proof that the forecasters can’t get it right. Unemployment claims will always drop just before the October 1st surge.
Worst economy since, since, well you know the rest.
Before the Great Crash, President Hoover did ask the banks not to loan money to people for the purpose of investing in the stock market. The banks ignored him. Voila! Hoover was correct. This time people have huge loans in terms of their mortgages while they merrily buy everything else including brand new cars.
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