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U.S. Initial Jobless Claims Unexpectedly Decline Again
By Courtney Schlisserman
Sept. 27 (Bloomberg) -- The number of U.S. workers filing first-time
claims for unemployment benefits unexpectedly fell to a four-month
low, helping to allay concerns about a weakening labor market.
Initial jobless claims declined by 15,000 to 298,000 in the week that
ended Sept. 22, the Labor Department said today in Washington. The
four-week moving average, a less volatile measure, dropped to 311,500
from 321,250.
Companies are holding on to employees, while limiting hiring plans, as
they wait to see whether the effects of rising mortgage defaults
spread to other parts of the economy. Treasury securities fell as the
slower pace of firings may ease the threat of a deeper slump in
consumer confidence.
``Maybe there's not a lot of hiring going on but, outside of mortgage
finance, there doesn't seem to be a lot of layoffs going on either,''
said Stuart Hoffman, chief economist at PNC Financial Services Group
Inc. in Pittsburgh.
Another government report showed the U.S. economy grew in the second
quarter at the fastest pace in more than a year before last month's
credit-market turmoil heightened concern the expansion might be cut
short.
GDP Report
Gross domestic product rose at a revised 3.8 percent annual rate from
April though June, propelled by a surge in exports, figures from the
Commerce Department showed in Washington. The economy advanced at a
0.6 percent rate in the first quarter.
Ten-year Treasury notes, which had been rising before the reports,
turned lower. Yields on the securities rose to 4.63 percent at 9:01
a.m. in New York, from 4.62 percent late yesterday.
Economists had forecast claims would rise to 316,000, from a
previously reported 311,000 for the prior week, according to the
median of 40 projections in a Bloomberg News survey. Estimates ranged
from 305,000 to 330,000. Last week's claims figure was the lowest
since the week ended May 12.
The number of people continuing to collect state unemployment benefits
rose to 2.551 million in the week that ended Sept. 15. The prior
week's 2.540 million was the lowest since July 21.
The continuing claims figures cover the survey period the Labor
Department uses to calculate its monthly payroll estimate, which is
scheduled to be reported on Oct. 5. Economists look at the pattern of
this measure for indications of how many people are finding jobs.
August Payrolls
Last month's payrolls report unexpectedly showed a loss of 4,000 jobs,
the first decline in four years.
The claims reports ``may suggest that the August employment report is
overstating the weakness in the labor market,'' said Ryan Sweet, an
economist at Moody's Economy.com in West Chester, Pennsylvania.
``Nevertheless, claims are going to creep higher and the economy is
going to be slowing in the current quarter.''
The unemployment rate among people eligible to collect state jobless
benefits, which tends to track the national unemployment rate, held at
1.9 percent in the week ended Sept. 15. Thirty-five states and
territories reported an increase in new claims, while 18 had a
decrease, the Labor report said. These data are reported with a one-
week lag.
Economists have been watching claims figures more closely since the
August employment report, which raised concern about the ability of
employers to cope with the potential fallout from further weakness in
the housing and credit markets.
Bernanke's Outlook
Federal Reserve Chairman Ben S. Bernanke testified before Congress on
Sept. 20 that the sell-off in credit markets could make the ``housing
correction more severe and it may have other effects on the economy.''
The central bank will ``try to keep reassessing our outlook and
adjusting policy in order to'' meet the Fed's mandate of price
stability and full employment.
Recent consumer confidence measures show Americans have a gloomier
view of the labor market than they did earlier this year. The share of
consumers who said jobs are plentiful this month fell to 25.7 percent
and those saying jobs are hard to find rose, the Conference Board said
on Sept. 25.
Even so, claims have shown resilience, economists said. So far this
year, jobless filings have averaged 317,500. For all of 2006, they
averaged 313,000.
``The level itself for initial claims doesn't seem to be a really
worrisome one,'' said Jonathan Basile, an economist at Credit Suisse
Holdings in New York. Firings currently seem to be limited to
industries affected by housing, including building and financing,
economists said.
Lennar Corp. will eliminate more jobs to ``bring us back to
profitability,'' chief executive officer Stuart Miller said in a
statement Sept. 25. The company, the largest U.S. homebuilder, cut
more than 1,000 employees last year and recorded its biggest quarter
loss in history in the third quarter.
U.S. Initial Jobless Claims Unexpectedly Decline Again
By Courtney Schlisserman
Sept. 27 (Bloomberg) -- The number of U.S. workers filing first-time
claims for unemployment benefits unexpectedly fell to a four-month
low, helping to allay concerns about a weakening labor market.
Initial jobless claims declined by 15,000 to 298,000 in the week that
ended Sept. 22, the Labor Department said today in Washington. The
four-week moving average, a less volatile measure, dropped to 311,500
from 321,250.
Companies are holding on to employees, while limiting hiring plans, as
they wait to see whether the effects of rising mortgage defaults
spread to other parts of the economy. Treasury securities fell as the
slower pace of firings may ease the threat of a deeper slump in
consumer confidence.
``Maybe there's not a lot of hiring going on but, outside of mortgage
finance, there doesn't seem to be a lot of layoffs going on either,''
said Stuart Hoffman, chief economist at PNC Financial Services Group
Inc. in Pittsburgh.
Another government report showed the U.S. economy grew in the second
quarter at the fastest pace in more than a year before last month's
credit-market turmoil heightened concern the expansion might be cut
short.
GDP Report
Gross domestic product rose at a revised 3.8 percent annual rate from
April though June, propelled by a surge in exports, figures from the
Commerce Department showed in Washington. The economy advanced at a
0.6 percent rate in the first quarter.
Ten-year Treasury notes, which had been rising before the reports,
turned lower. Yields on the securities rose to 4.63 percent at 9:01
a.m. in New York, from 4.62 percent late yesterday.
Economists had forecast claims would rise to 316,000, from a
previously reported 311,000 for the prior week, according to the
median of 40 projections in a Bloomberg News survey. Estimates ranged
from 305,000 to 330,000. Last week's claims figure was the lowest
since the week ended May 12.
The number of people continuing to collect state unemployment benefits
rose to 2.551 million in the week that ended Sept. 15. The prior
week's 2.540 million was the lowest since July 21.
The continuing claims figures cover the survey period the Labor
Department uses to calculate its monthly payroll estimate, which is
scheduled to be reported on Oct. 5. Economists look at the pattern of
this measure for indications of how many people are finding jobs.
August Payrolls
Last month's payrolls report unexpectedly showed a loss of 4,000 jobs,
the first decline in four years.
The claims reports ``may suggest that the August employment report is
overstating the weakness in the labor market,'' said Ryan Sweet, an
economist at Moody's Economy.com in West Chester, Pennsylvania.
``Nevertheless, claims are going to creep higher and the economy is
going to be slowing in the current quarter.''
The unemployment rate among people eligible to collect state jobless
benefits, which tends to track the national unemployment rate, held at
1.9 percent in the week ended Sept. 15. Thirty-five states and
territories reported an increase in new claims, while 18 had a
decrease, the Labor report said. These data are reported with a one-
week lag.
Economists have been watching claims figures more closely since the
August employment report, which raised concern about the ability of
employers to cope with the potential fallout from further weakness in
the housing and credit markets.
Bernanke's Outlook
Federal Reserve Chairman Ben S. Bernanke testified before Congress on
Sept. 20 that the sell-off in credit markets could make the ``housing
correction more severe and it may have other effects on the economy.''
The central bank will ``try to keep reassessing our outlook and
adjusting policy in order to'' meet the Fed's mandate of price
stability and full employment.
Recent consumer confidence measures show Americans have a gloomier
view of the labor market than they did earlier this year. The share of
consumers who said jobs are plentiful this month fell to 25.7 percent
and those saying jobs are hard to find rose, the Conference Board said
on Sept. 25.
Even so, claims have shown resilience, economists said. So far this
year, jobless filings have averaged 317,500. For all of 2006, they
averaged 313,000.
``The level itself for initial claims doesn't seem to be a really
worrisome one,'' said Jonathan Basile, an economist at Credit Suisse
Holdings in New York. Firings currently seem to be limited to
industries affected by housing, including building and financing,
economists said.
Lennar Corp. will eliminate more jobs to ``bring us back to
profitability,'' chief executive officer Stuart Miller said in a
statement Sept. 25. The company, the largest U.S. homebuilder, cut
more than 1,000 employees last year and recorded its biggest quarter
loss in history in the third quarter.
