Thursday, October 1, 2009

Jobless claims rise, trend still favorable

The general trend has been to the downside, but the latest reading on jobless claims is showing that progress is slow.

The Labor Department reported this morning that weekly initial jobless claims increased 17,000 to 551,000. while the 4-week moving average, which smoothes out some of the week-to-week volatility, fell by 6,250 to 548,000.

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A drop in continuing claims of 70,000 to 6.09 million may be suggesting that a few of the unemployed are finding jobs, but with the unemployment rates at its highest level in 26-years, it seems more likely that the drop in continuing claims is probably tied to the expiration of standard 6-month benefits.

Despite recent gains in economic activity, especially in housing and in manufacturing, many firms continue to cut jobs amid a generally uncertain outlook.

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