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Title: Initial Unemployment Claims in U.S. Decline More Than Estimated to 391,000
Source:
Bloomberg
URL Source: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aacbiepIuca4
Published: Feb 24, 2011
Author: By Alex Kowalski
Post Date: 2011-02-24 11:16:51 by Brian S
Keywords: None
Views: 662
Comments: 1
Feb. 24 (Bloomberg) -- The number of Americans filing first-time claims for unemployment insurance fell more than forecast last week, indicating an improving labor market. Applications for jobless benefits decreased by 22,000 to 391,000 in the week ended Feb. 19, Labor Department figures showed today. Economists forecast claims would drop to 405,000, according to the median estimate in a Bloomberg News survey. Claims have fallen in three of the past four weeks, pushing down the monthly average to the lowest level since July 2008. Companies may begin to ratchet up hiring after reducing firings, which will bring unemployment down further. That would help allay concerns from Federal Reserve policy makers who expressed “disappointment in both the pace and the unevenness of the improvements in labor markets” in the minutes of their Jan. 25-26 meeting released last week. “The unemployment rate is going to grind lower,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets Corp. in New York, who forecast claims would drop to 394,000. “This level is fairly consistent with the pace of job gains that we are presently witnessing, which is to say right around 150,000.” Stock-index futures held earlier losses after the reports on jobless claims and durable goods as oil prices rose to the highest level in 30 months. The contract on the Standard & Poor’s 500 Index maturing in March fell 0.5 percent to 1,299.1 at 8:35 a.m. in New York. Treasury securities rose, sending the yield on the benchmark 10-year note down to 3.44 percent from 3.49 percent late yesterday. Prior Week Jobless claims estimates in the Bloomberg News survey of 51 economists ranged from 375,000 to 420,000. The Labor Department initially reported the prior week’s figures at 410,000. There were no special factors affecting the figures, a Labor Department official said today. The four-week moving average, a less volatile measure, fell to 402,000 from 418,500 last week, the lowest since 398,750 in July 2008. The number of people continuing to collect jobless benefits fell by 145,000 in the week ended Feb. 12 to 3.79 million. Economists forecast the number would decline to 3.88 million. Figures for continuing claims do not include the number of workers receiving extended benefits under federal programs. Those who’ve used up their benefits and are now collecting emergency and extended payments decreased by 55,330 to 4.45 million in the week ended Feb. 5. Unemployment The unemployment among those eligible for benefits, which tends to track the jobless rate, fell to 3.0 percent. That is the lowest since November 2008, according to a Labor Department official. Thirty-five states and territories reported a decrease in claims, while 18 had an increase. Initial jobless claims reflect weekly firings and tend to fall as job growth -- measured by the monthly non-farm payrolls report -- accelerates. Federal Reserve policy makers will likely keep interest rates near zero and maintain plans to buy $600 billion in Treasury securities to boost the pace of recovery until they see signs of sustained job creation. Employers hired 183,000 workers in February as the unemployment rate rose to 9.1 percent, according to the median estimate of economists in a Bloomberg News survey ahead of next week’s employment report. The Labor Department will release the figures March 4. Payrolls Last month, payrolls increased a fewer-than-forecast 36,000 while the jobless rate unexpectedly fell to 9 percent, the lowest since April 2009, the Labor Department reported Feb. 4. Unemployment dropped to 9.4 percent in December from 9.8 percent the previous month. While touring an Intel Corp. semiconductor manufacturing facility in Hillsboro, Oregon, last week, President Barack Obama said the U.S. must foster a business climate that encourages job creation and assures companies can draw on an educated workforce. “In a world that is more competitive than ever before, it’s our job to make sure that America is the best place on earth to do business,” Obama said Feb. 18 at the factory. Intel, the world’s largest chipmaker, announced plans during the president’s visit to build a $5 billion microprocessor plant in Arizona and hire 4,000 employees in the U.S. this year. The workers will focus on product development, research and design, Paul Otellini, chief executive officer of Intel, said as he showed Obama around the plant, west of Portland. The new factory will be built at the company’s existing site in Chandler, Arizona. Santa Clara, California-based Intel is expanding its factory network to meet increasing demand for chips. The company said last month that it would spend $8.7 billion to $9.3 billion on plants and equipment this year, compared with $5.2 billion in 2010. Revenue may rise 14 percent to $49.5 billion this year, according to the average estimate of analysts surveyed by Bloomberg.
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#1. To: Brian S (#0)
ALL IS WELL IN THE ECONOMY!
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Top • Page Up • Full Thread • Page Down • Bottom/LatestThe number of Americans filing first-time claims for unemployment insurance fell more than forecast last week, indicating an improving labor market.
REALLY!!!
WOULD THE GOVERNMENT LIE TO YOU?
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