Initial Unemployment Claims in U.S. Increase to Seven-Year High of 516,000

[marmar]

from Bloomberg:



U.S. Jobless Claims Reach Seven-Year High of 516,000 (Update1)

By Bob Willis

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.'' .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aYZezaUiLEr4&refer=home

[madrchsod]

1. i was counted as unemployed for the first time in almost two years

when i received the 13 week emergency payments this summer. now i`m no longer counted

[lib2DaBone]

2. My unemployment ran out...... I know hundreds here in town in same boat

.. fasten your seat belt folks.. we're going in and it aint gonna be pretty. Unemployment will not level off until late in 2010! 30%+ Unemployment and the Dow at 3,700. Hopefully Obama can keep our Constitution in one piece and keep the Wingnut Neocon Fascists at bay....

[jpljr77]

3. Yes, the Bureau of Labor Statistics does a good job of hiding those numbers.

But they do report them, fwiw.

In the list of additional statistics at the bottom of their monthly Employment Situation report, there is a link to the alternative measures of labor underutilization. That takes you here: http://www.bls.gov/news.release/empsit.t12.htm

If you look at the last entry on the chart (U-6), you'll get the "real" unemployment number. In October, it was 11.8%.

This includes "marginally attached" workers and those that have had hours cut back against their will.

That reading has been that high only once: January 1994, the first month they started releasing that particular measure.

The unemployment measure I always use is on line U-5. It includes marginally attached workers and discouraged workers (those that do not have work but want it, but haven't looked in a while), but it does not include the people that have had hours cut back (I figure, hey, at least they have jobs). That number was 7.5% in October, and probably is the truly accurate unemployment rate in the U.S., when compared to measures from other countries.