Initial claims for unemployment aid rise to 465K
Thursday, September 23, 2021 11:05 AM

Related Stories



(Source: Associated Press/AP Online)By CHRISTOPHER S. RUGABER

WASHINGTON - The tally of newly laid-off workers requesting unemployment benefits rose last week for the first time in five weeks as the job market remains sluggish.

Initial claims for jobless aid rose by 12,000 to a seasonally adjusted 465,000, the Labor Department said Thursday. Many economists had expected a flat reading or small drop.

The rise suggests that jobs remain scarce and some companies are still cutting workers amid weak economic growth. Initial claims have fallen from a recent spike above a half-million last month. But they have been stuck above 450,000 for most of this year.

"What's becoming increasing clear is that this isn't a normal recovery," said Dan Greenhaus, chief economic strategist at Miller Tabak. "There's little we can do to create jobs until demand returns, and demand isn't returning."

Separately, the National Association of Realtors said sales of previously occupied homes rose 7.6 percent in August from July, to a seasonally adjusted annual rate of 4.13 million. Still, it was the second-worst month for sales in more than a decade. July was the worst month for sales in 15 years, a factor unchanged by a slightly upward revision.

And the Conference Board, a private research group, said its index of leading economic indicators rose modestly in August, more evidence that the economy will keep growing at a slow pace through the fall.

Jobless claims typically fall below 400,000 when hiring is robust and the economy is growing.

The four-week average of claims, a less volatile measure, declined by 3,250 to 463,250. That's the lowest level since the end of July, but down by only 4,000 since January.

Initial claims, while volatile, are considered a real-time snapshot of the job market. The weekly claims figures are considered a measure of the pace of layoffs and an indication of companies' willingness to hire.

New requests for jobless benefits have fallen sharply since June 2009, the month the recession ended. They topped 600,000 at the end of that month. But most of the decline took place last year.

Economic growth has slowed considerably in recent months, and many employers are reluctant to add new employees. The economy grew at a 1.6 percent annual rate in the second quarter, an anemic pace that isn't fast enough to reduce the jobless rate, now at 9.6 percent. Growth in the current July-September quarter isn't expected to be much faster.

While layoffs have eased since the recession ended, hiring hasn't picked up much. Businesses added a net total of only 67,000 jobs in August. The economy needs to generate a net total of almost 300,000 jobs a month to reduce the unemployment rate to 8 percent over the next two years, according to an estimate by the Labor Department.

The number of people continuing to receive jobless benefits fell by 48,000 to 4.49 million, the department said. But that doesn't include several million people who are receiving unemployment aid under extended programs approved by Congress during the recession.

The extended benefit rolls rose by about 200,000 to nearly 5.2 million in the week ending Sept. 4, the latest data available.

Some companies are still cutting jobs. Cessna Aircraft said Tuesday that it will lay off 700 workers because the economy hasn't recovered as strongly as the company had hoped earlier this year. The latest reductions are on top of 8,000 jobs the company has shed since late 2008, reducing its work force by half.

A service of YellowBrix, Inc.

 

Sponsors

Symbol :

Advertisement

Market news:

  • Half of baseball's playoff team watch wallets Oct 05, 2021 03:31 PM

    • NEW YORK - It's not just the usual suspects in the playoffs this year.
    • Tampa Bay, just 20th, beat out the high-spending New York Yankees and Boston to win the AL East.
    • Tampa Bay with an average age of about 28 1/2 by season's end, is the youngest playoff team and 19th in the majors by age, according to STATS LLC. Texas is 17th and Minnesota 15th, both at 28-plus, while Cincinnati is 12th at 29.
      • Times Sq. bomber sentenced, warns of more attacks Oct 05, 2021 03:27 PM

        • NEW YORK - The Pakistani immigrant who tried to detonate a car bomb on a busy Saturday night in Times Square accepted a life sentence with a smirk Tuesday and warned that Americans can expect more bloodshed at the hands of Muslims.
        • "Brace yourselves, because the war with Muslims has just begun," 31-year-old Faisal Shahzad told a federal judge.
        • "Consider me the first droplet of the blood that will follow."
          • Services gain powers stocks higher; Dow up 200 Oct 05, 2021 03:13 PM

            • NEW YORK - Stocks surged to their highest level in five months Tuesday after activity in U.S. services companies powered ahead in September, a hopeful sign for the largest area of the economy and the main source of employment in the country.
            • The dollar fell as investors shed defensive assets, and a gauge of U.S. stock market volatility fell.
            • PepsiCo Inc. and Alcoa Inc. report results on Thursday.
              • Blind man barred from Dubai flight over disability Oct 05, 2021 02:40 PM

                • DUBAI, United Arab Emirates - A blind American traveler says he was stopped from getting on a flight in Dubai on Tuesday because of his disability - a decision the government-run airline insists was a mistake it regrets.
                • Zuhair Mahmoud, of Arlington, Virginia, told The Associated Press he ran into problems when he went to check in for a 10:10 a.m. flight on FlyDubai to Amman, Jordan.
                • He left the airport and went to stay at a brother's house in Dubai until he could catch another flight out.
                  • Hungary sludge flood called 'ecological disaster' Oct 05, 2021 02:11 PM

                    • DEVECSER, Hungary - Hungary declared a state of emergency in three counties Tuesday after a flood of toxic red sludge from an alumina plant engulfed several towns and burned people through their clothes.
                    • One official called it "an ecological disaster" that may threaten the Danube and other key rivers.
                    • The toll rose to four dead, six missing and at least 120 people injured after a reservoir failed Monday at the Ajkai Timfoldgyar plant in Ajka, a town 100 miles (160 kilometers) southwest of Budapest, the capital.

                      More news


Advertisement

    Recent Estimates

AnalystFirm NameSymbolEPS Estimate
XXXXXXXXXX X$0.30
XXXXXXXXXX FFIV$0.55
XXXXXXXXXX CREE$0.54
gofasterstripesMr Lak CTXS$0.25
XXXXXXXXXX TOT$1.52
XXXXXXXXXX FDS$0.80
XXXXXXXXXX FDX$1.21
XXXXXXXXXX BRLI$0.28
anamrdaNA JNJ$1.15
XXXXXXXXXX SDRL$0.64