New Jobless Claims Fell Less Than Expected Last Week

WASHINGTON (Lucia Mutikani) - New claims for unemployment benefits fell less than expected last week, according to a government report on Thursday that could add to fears the labor market recovery has taken a step back.

Initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 422,000, the Labor Department said. The prior week's figure was revised up to 428,000.

Economists polled by Reuters had forecast claims dropping to 415,000 from a previously reported count of 424,000.

The claims report falls outside the survey period for the government's closely watched data on nonfarm payrolls for May.

The government is expected to report on Friday that employers added 150,000 jobs last month, according to a Reuters survey, after increasing payrolls by 244,000 in April.

Initial claims have been volatile in recent weeks as supply chain disruptions from the March earthquake in Japan caused temporary motor vehicle plant closures.

Claims have also been distorted by bad weather in some parts of the country and problems smoothing the data for seasonal variations.

A Labor Department official said there was nothing unusual in the state-level data, but noted that four states and territories, including Virginia and Oklahoma, had been estimated because of the Memorial Day holiday on Monday.

He also said Missouri had indicated that floods were affecting claims in the state, but provided insufficient information to quantify the impact.

The four-week moving average of new jobless claims, considered a better gauge of labor market trends, fell 14,000 to 425,500.

Initial claims have now been perched above the 400,000 mark for eight weeks in a row. Analysts normally associate that level with steady job growth.

The number of people still receiving benefits under regular state programs after an initial week of aid slipped 1,000 to 3.71 million in the week ended May 21.

Economists had expected so-called continuing claims to dip to 3.67 million from a previously reported 3.69 million.

The number of people on emergency unemployment benefits rose 3,363 to 3.42 million in the week ended May 14, the latest week for which data is available. A total of 7.68 million people were claiming unemployment benefits during that period under all programs.

(Editing by Neil Stempleman)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[Lisa Stubbs Hall]

02:31 PM on 06/06/2011

OF COURSE THE UNEMPLOYEMENT RATE HAS DROPPEDAS FAR AS WHO IS GEETTING UNEMPLOYEMENT BENIFITS THAT IS!!!!! THESES TYPES OF COMMENMTS MAKE ME SICK !!!! IT HAS NOT DROPPED THEY JUST ARENT PAYING OUT BENEFITS ANYMORE!!!!!

[robrtl]

10:22 AM on 06/03/2011

soften the blow 35000 jobs created instead of 150000 predicted welcome to 1937 mr bernanke, and mr, obama and the lovable late taxpayer tim giethner,,,, triad of futility

[OldTulsan]

08:56 AM on 06/03/2011

Unemployment (U-3) for May, 2011: 9.1%

Underemployment (U-6) for May, 2011: 15.8%

From:

http://www.bls.gov/news.release/empsit.t15.htm

[xilduq]

11:47 PM on 06/02/2011

"The four-week moving average of new jobless claims, considered a better gauge of labor market trends, fell 14,000 to 425,500."

looking for analysis without the spin?: http://globaleconomicanalysis.blogspot.com/2011/06/mood-swings-economists-rush-to-lower.html

Expect a drop (an improvement) in [the four-week moving average] number.

In light of recent data a drop may seem counter-intuitive but it is highly likely. The reason is simple. The last four weeks' claims numbers are, in order: 424K, 414K, 438K, and 478K.

478,000 drops off the list. It will be replaced by the numbers for the week ending May 28. Unless that number is greater than 478,000 the moving average will drop. I will take the under on 478,000 and thus the under (expecting a drop) in the moving average.

[robrtl]

10:26 AM on 06/03/2011

interesting hhow wrong prognosticators can be,,,,spin, spin

[retie133]

07:01 PM on 06/02/2011

Let me get this straight,the Bush and republican plan to bail out wall street would help the economy and create jobs,the republican demand that the Bush tax cuts would have to be extended to creare jobs, with all the billions of taxpayer money given to the wealthy I have one question for speaker Boehner.Where are all these jobs,jobs,jobs I kept hearing about from the republican party.

[graffitijoe]

09:07 PM on 06/02/2011

Ask Obama, he's the one who signed the extended tax cuts into law, in December, while Pelosi was still the Speaker.

[jtabs]

06:04 PM on 06/02/2011

I've said it before and I'll say it again, we are on the edge of a double dip recession and as it appears that our political leaders are incapable of acting responsibly and our corrupt corporate masters could care less I don't hold out much hope.

[spinotter11]

09:17 AM on 06/03/2011

It's worse that just a double dip recession. It's a new and savage world out there, and there are a lot of hungry predators out for profit at any cost.

[Trustfunded1]

04:54 PM on 06/02/2011

Those BLS guys are masters at deceit.

[xilduq]

11:50 PM on 06/02/2011

well, they did study at the Goebbels School of Ministry

[enviro1]

01:56 PM on 06/02/2011

"Unexpected" "less than expected" "not expected" "worse than expected"....when you have no one in the administration that has worked in the private sector....I guess that's what you get.
Would you want me performing open heart surgery on you when I've never put a toe in the operating room? We are in huge trouble at this point....Bush and Obama are both to blame, they will go down in history as horrible presidents....and they are much more alike than many of you want to admit, they both are all about big business, corruption and wall street.....as well as spreading our tax dollars around the world in an international fashion.....We'd better elect a president soon that has America's interests at heart and is willing to do what is necessary to reinvest in our country and infrastructure without going into bookoo debt because we are spending money overseas on aide and wars.....

[Trepasky]

02:19 PM on 06/02/2011

As if the president runs the Government LOL
There are three parts not just a king as GW tried to get us to believe.

We need a government that represents the people. In the Senate, in the House, and the President.

[MrStat1]

04:09 PM on 06/02/2011

Then next time vote for someone you think is that way. If they don't win then that is just the way it is.

[enviro1]

10:19 AM on 06/03/2011

You are right regarding the house and the senate....but the president has to set the tone with his policies.

[Jeanette Schotl]

10:45 AM on 06/03/2011

Good luck with that, electing a pres. that has US interests at heart... for what Obama walked into, and the obstructions he faces, he's doing good. Maybe you slept thru the downward spiral we were in when Obama took office. Actually, it was as international collapse caused by the ARMs/ banks of America and corporate greed

[dfranz]

12:13 PM on 06/02/2011

The good news is if the Republican plans are any measure, the unemployment % should be goiing down soon. The bad news is that childern living in poverty will increase. Once they stop receiving unemployment beneifts they are no longer considered unemployed........just destitute.

[OldTulsan]

11:46 AM on 06/02/2011

http://money.cnn.com/2011/06/01/news/economy/scary_signs_for_jobs/index.htm
Negative signs for the job market - Jun. 1, 2011

"...The services sector has also shown signs of slower growth, and recently saw its lowest monthly job gains since last July, according to ADP.

"That certainly has got nothing to due with motor vehicles or Japan," Ashworth said. "It could still be related to the tornadoes -- although my suspicion is it's just a sign of a slowdown in overall hiring growth."

Looking ahead to Friday's government tally, economists surveyed by CNNMoney say they're expecting to see that 170,000 jobs were created in May.

Eight of the 26 economists surveyed cut their forecasts following Wednesday's ADP and ISM reports. Of those who revised their forecasts, the average cut was by 54,000 jobs.

Forecasts are estimating the unemployment rate ticked down to 8.9% from 9% in April"

[Basselope]

11:36 AM on 06/02/2011

Another month and more positive job growth.

If we could return to a sane tax policy (like the tax rate under Clinton), the government might actually have some revenue.

[enviro1]

01:52 PM on 06/02/2011

More positive job growth? Really? We aren't even close to the number that is required to break even on new people who are entering the job market?

If you want to pay higher taxes, go ahead....no one is stopping you from forking over more money to the IRS...they will gladly accept it....just include it in your return with the check that you currently owe...or do you even pay taxes? If so, just add the dollar amount you want to add to the check....surely, with all the people on this forum promoting higher taxes, if each one would just add $10,000.00 or maybe $500.00 extra to their payments (if they work) then that would be a great work.....please respond to let us know how much extra you will be paying.

[Trepasky]

02:05 PM on 06/02/2011

About 10% of the 45% who paid no taxes last year, made more than $50,000 and many made millions.

The upper income wealthy paid an effective rate of 17% which is lower than the middle class 18% rate.

The GOP plan is to cut the tax rate for the wealthy.

[Basselope]

03:32 PM on 06/02/2011

So losing jobs is better than gaining them according to you????

As for your "voluntary" tax program... let me know when we return to a sane tax policy and I will be happy to contribute my fair share.

[builderman55]

10:47 AM on 06/02/2011

All it would take to kick start a REAL recovery is for TBTF banks and Wall Street to start investing in AMERICA with the unprecedentedly massive amounts of cash tney are sitting on. But they are still holding us hostage for daring to propose regulation on their activities. Guess they are hoping they can sneak another president with an R behind his name into the White House...

[MrStat1]

04:11 PM on 06/02/2011

You need to understand that a lot of this cash companies are sitting on is overseas, and if they bring it back to the US they have to pay high corporate tax rate on that money, and that is exactly why they will not. Until the tax rates come down they are going to sit on it.

[builderman55]

08:37 PM on 06/02/2011

What I understand is that the effective tax rate on corporations is lower in America than it is in most countries. What I also understand is that our economy is crippled due to the nefarious practices of corporate America and that if they had any sense of a stake in the future of the country they would ante up and take some risks. Sounds like a form of bribery to me...

[thestargazer]

10:37 AM on 06/02/2011

What depression? CNBC says that things have never been better and Crammer says that this bull market will never end?