Posted on 03/22/2007 7:23:05 AM PDT by Toddsterpatriot
Number of Laid-Off Workers Filing Claims for Unemployment Benefits Fall for 3rd Straight Week
WASHINGTON (AP) -- The number of laid-off workers filing claims for unemployment benefits fell last week for the third consecutive time, signaling that the labor market may be stabilizing after a worrisome jump in layoffs earlier in the year.
The Labor Department reported Thursday that the number of applications for jobless benefits totaled 316,000 last week, a decline of 4,000 from the previous week.
The third straight drop in claims pushed them down to the lowest level in six weeks and provided evidence that the labor market is not seriously weakening even though the overall economy is slowing.
Last week's decline caught analysts by surprise. They had been forecasting that claims would rise by around 7,000 after two weeks of improvement. Economists are closely watching layoffs to see if the economic slowdown that began last year will at some point prompt employers to trim their workforces.
So far businesses have been reluctant to lay off employees although they have reduced the hiring of new workers. A total of 97,000 new jobs were added to payrolls in February, the weakest performance in two years, although the unemployment rate showed a slight improvement, falling to 4.5 percent, down from 4.6 percent in January.
The economy slowed sharply in the spring of last year, under the impact of soaring energy prices and a faltering housing market. Recently, financial markets around the globe have suffered sharp sell-offs as investors have grown worried that rising troubles in the mortgage lending industry could spread to the overall economy.
However, the Federal Reserve triggered a strong rally on Wall Street on Wednesday after Fed policymakers signaled that they might consider cutting rates later this year if the economy weakens further.
The drop of 4,000 claims followed a decline of 10,000 for the week ending March 10.
In that week, 34 states and territories reported declines in claims before adjusting for normal seasonal variations. A total of 19 states and territories saw claims rise during that week.
The biggest increases were in Tennessee, a rise of 2,837 that was blamed on layoffs in services, real estate and manufacturing. North Carolina had a rise of 2,642 claims and Wisconsin saw claims rise by 1,444.
The biggest decreases in claims were in New York, which saw a drop of 10,766, reflecting fewer layoffs in service and transportation industries. Michigan had a decine of 8,039 claims, reflecting fewer layoffs in the auto industry, while California saw layoffs fall by 3,181, reflecting fewer layoffs in construction.
Dam--this is gong to kill the housing market.
Dam--this is going to kill the housing market.
What good is holding power if you aren't going to screw the pooch?
{Sarcasm Off!}
And send gold to $1650 an ounce.
Maybe we're not being patient enough. Doom is coming, we just need to wait until the second half of the year when all those adjustable mortgages reset. And if that doesn't do it, I'm sure there will be something the following year that will bring doom.
Doom is inevitable when you're a doomer.
Good news just makes our inevitable fall more serious.
The unemployment rate would have been -23.0% if we didn't ship all those manufacturing jobs to China. We don't make anything anymore. 93% of new jobs are flipping hamburgers at McDonalds. Buy Gold!
/Doomer
With low unemployment and the Fed reiterrating its's inflation concerns yet taking a neutral stance on rates yesterday, gold would seem to be the move.
The Fed raises rates when it is concerned about inflation. Yesterday the fed so indicated yet chose a neutral bias with respect to rates. If your paper is worth less gold provides a hedge.
Low unemployment suggests the economy could be heating up. Increasing unemployment is suggestive of a slowing economy which is usually met with the need to provide liquidity by lowering interest rates thereby increasing borrowing leqading hopefully to economic expansion.
Employment is a lagging indicator.
Increasing unemployment is suggestive of a slowing economy which is usually met with the need to provide liquidity by lowering interest rates thereby increasing borrowing leqading hopefully to economic expansion.
So leaving rates the same is good for gold but cutting them is bad for gold?
That's how I see it. I'm no gold bug. What do you say?
There is also the school that says the more disposable income in the pockets of consumers translates into more gold jewelry purchases. The consumers in Asia love the stuff.
Low unemployment does not cause inflation so it can not be seen as good for the price of gold. Unemployment was very low in the late 90s, how did gold do then?
Unemployment in an of itself is not an indicator of where gold is going. I'd want to know such things as which countries are buying or dumping, political insurrections, energy prices, consumer trends...I may be wrong, but historic indicators for buying gold may be less reliable today or over the last 20 years
Excellent!
With low unemployment and the Fed reiterrating its's inflation concerns yet taking a neutral stance on rates yesterday, gold would seem to be the move.
Better.
Gold is now up a couple bucks while there appears to be no follow through on yesterday's big move in equities. What does that suggest to you?
Nothing.
Short covering panic
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