U.S. Jobless Claims Reach Seven-Year High of 516,000

[MaineDem]

Source: Bloomberg

Nov. 13 (Bloomberg) -- First-time claims for U.S. unemployment insurance rose last week to the highest level since September 2001, when the economy was last in a recession, as weakening demand led companies to fire more workers.

Initial jobless claims increased by 32,000 to a larger- than-forecast 516,000 in the week ended Nov. 8, from a revised 484,000 the prior week, the Labor Department said today in Washington. The total number of people on benefit rolls jumped to the highest level since 1983.

Restrictive credit and slumping demand are causing companies to retrench by trimming payrolls and investment. Rising joblessness will further squeeze consumer spending, which accounts for more than two-thirds of the economy, and threaten a protracted downturn, economists said.

``The labor market is only reinforcing a very pessimistic picture,'' Linda Barrington, a labor economist at the Conference Board, said in a Bloomberg Television interview. ``When you start to see the downward pressure on wages as well as the credit crunch, that's only going to make consumers much more nervous.''

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aYZezaUiLEr4&refer=home

[Roland99]

1. Bah...just a fluke...must be just related to post-Ike problems. Fundamentals are strong

At least Bushie and Mac say so.

[WriteDown]

2. Jobless claims surge while trade deficit narrows

Source: http://news.yahoo.com/s/ap/20081113/ap_on_bi_go_ec_fi/financial_meltdown_41

WASHINGTON – Applications for unemployment benefits soared to the highest level since just after the Sept. 11, 2001, terrorist attacks while the trade deficit shrank more than expected as demand for imports plunged, further evidence of the struggling U.S. economy.

The Labor Department reported Thursday that jobless claims shot up by 32,000 last week to a seasonally adjusted 516,000, the highest total in seven years. The tally was much higher than analysts expected and a further indication of how much the labor market is deteriorating amid the shrinking economy. The government reported last week that the unemployment rate surged to a 14-year high of 6.5 percent in October.

Meanwhile, the Commerce Department said the trade deficit declined by a bigger-than-expected amount in September, falling by 4.4 percent to $56.5 billion as imports experienced a record plunge.

The import decline was led by a huge fall in imported oil as the average price for crude dropped by a record $12.41 per barrel and the volume of shipments fell to the lowest level in five years. But demand for other types of imports also fell, with imported cars and car parts dropping to the lowest level in more than five years, an indication that foreign automakers are feeling the pinch hitting U.S. consumers.....

No link yet.

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At least there is some good news. This is pretty much what I would expect, but the strengthening dollar and the improved trade deficit are definitely much needed.

[nolabels]

3. Well at least that is one good thing kinda

All those dis-patriot corporations trying to bring their junk back into states are now starting to eat their lunch :shrug:

[xchrom]

4. recommend

[ixion]

5. "start to see the downward pressure on wages"... START?

there has been near constant downward pressure on wages since the 70's, in general, and even more so over the past 3 years.

[Skittles]

6. it will get much, much worse

it's a complete employer's market right now - they don't have to pay shit and they know it