New U.S. claims for unemployment benefits fell slightly more than expected last week, government data showed on Thursday, offering a ray of hope for the anemic labor market recovery.
Initial claims for state unemployment benefits dropped 11,000 to a seasonally adjusted 457,000 in the week ended July 24, the LAbor Department said.
Analysts polled by Reuters had forecasts claims slipping to 459,000 from the previously reported 464,000 the prior week, which was revisde slightly up to 468,000 in Thursday’s report.
More bad news on the Jobs Front. We seem to be stuck between 440,000 and 480,000 initial new claims for unemployment for the week. These numbers need to go down below 400,000 to show any progress. In an article also in Reuters earlier this week it was reported that 40 states have actually have fewer jobs in the private sector since 2005. And nationwide there are 4.5 million fewer jobs in the private sector than 5 years ago. And a Associated Press survey of Economists see a “tepid recovery” deep into 2011. They also state the consumers will remain “tightfisted” and unemployment will remain high. Things are not good out here folks!
Agree with Depot Jim. Also, where do these new jobs come from? Big concern is how much the federal government is growing still (largest US employer by far as it is). That is a big concern that the public side is where job growth is currently at. Big business needs to take the plunge, hire people, and be patient for 2 Quarters until consumer spending picks up some. Otherwise, things look tough for the long term.
optimistic ozzie, I agree with you. But usually the hiring in a economic recovery comes from small to medium size businesses. Unfortunately in that sector money and credit is tight, and sales are flat at best.