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Thursday, 23 April 2009 - New jobless claims rise more than expected to 640K
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    Read more with google mobile : New jobless claims rise more than expected to 640K

    Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Africa Europe Latin America Middle East North America Search Search: New jobless claims rise more than expected to 640K By CHRISTOPHER S. RUGABER,AP Economics Writer AP - Friday, April 24 WASHINGTON - New jobless claims rose more than expected last week, while the number of workers continuing to filing claims for unemployment benefits topped 6.1 million. ADVERTISEMENT Both figures are fresh evidence layoffs persist amid a weak job market that is not expected to rebound anytime soon. The Labor Department said Thursday that initial claims for unemployment compensation rose to a seasonally adjusted 640,000, up from a revised 613,000 the previous week. That was slightly above analysts' expectations of 635,000. Economists are closely watching the unemployment compensation data because they believe a sustained decline in the number of initial claims could signal the end of the recession is nearing. Jobless claims have historically peaked six to 10 weeks before recessions end, according to a report by Goldman Sachs. Initial claims reflect the level of job cuts by employers. But the latest report shows job losses remain high. The four-week average of claims, which smooths out volatility, dropped slightly to 646,750, about 12,000 below the peak in early April. Goldman Sachs economists have said a decline of 30,000 to 40,000 in the four-week average is needed to signal a peak. In another sign of labor market weakness, the number of people continuing to claim benefits rose to 6.13 million, setting a record for the 12th straight week. As a proportion of the work force, the total jobless benefit rolls are the highest since January 1983. The continuing claims data lag initial claims by a week. The high level of continuing claims is a sign that many laid-off workers are having difficulty finding new jobs. Employers have cut 5.1 million jobs since the recession began in December 2007 in an effort to slash costs as consumers and businesses have sharply reduced spending. The department said earlier this month that companies cut a net total of 663,000 jobs in March, sending the unemployment rate to 8.5 percent, the highest in 25 years. The cuts reflect the depth of the downturn, which has been global in scope. The International Monetary Fund estimated Wednesday that the global economy would shrink 1.3 percent this year, the first drop in more than six decades. The IMF projects the U.S. economy will decline 2.8 percent, the worst since 1946. "The world economy is going through the most severe crisis in generations," Treasury Secretary Timothy Geithner said Wednesday. The Obama administration is counting on its $787 billion stimulus package, enacted in February, to "save or create" 3.5 million jobs. More job losses were announced this week. Yahoo Inc. said it will layoff 700 employees, the third round of mass layoffs this year. And oilfield services provider Halliburton Co. said it has cut 2,000 positions in the first three months of the year. Among the states, Florida saw the largest increase in claims with 9,303 for the week ending April 11, which it attributed to more layoffs in the construction, service and manufacturing industries. The next largest increases were in Pennsylvania, California, Wisconsin and New York. Michigan saw the largest drop in claims with 12,566, which it said was due to fewer layoffs in the automobile industry. The next biggest declines were in North Carolina, Missouri, Kentucky and Oregon. Email Story IM Story Printable View Blog This Recommend this article 0 users recommend Sign in to recommend this article » Most Recommended Stories » Related Articles: World Great Train Robber must wait on parole decisionAP - 29 minutes ago Clinton: Pakistan realizing threat from insurgentsAP - 38 minutes ago Electricity providers say plan would raise pricesAP - 42 minutes ago Senate vote on Sebelius likely to slipAP - 45 minutes ago Woman, 20, jailed in university shooting threatAP - 46 minutes ago Most Popular – World Viewed IMF sees deeper 2009 decline, weak 2010 IMF says world in recession, auto giants flop Robust profits mask problems in bank sector Fertility doctor on brink of cloning human: report Charred meat linked to pancreatic cancer risk View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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