WASHINGTON — The number of newly laid-off workers
seeking unemployment benefits fell last week to the lowest level since early
July, evidence that job cuts are slowing.
The Labor Department said Thursday that initial
claims for unemployment insurance dropped to a seasonally adjusted 545,000 from
an upwardly revised 557,000 the previous week. Wall Street economists expected
claims to rise by 5,000, according to Thomson Reuters.
The decline is the third in the past four weeks. The
four-week average, which smooths out fluctuations, dropped 8,750 to 563,000.
Despite the improvement, that's far above the 325,000 per week that is typical
in a healthy economy.
The number of people claiming benefits for more than
a week rose by 129,000 to a seasonally adjusted 6.2 million. The continuing
claims data lags initial claims by one week.
When federal extended benefits are included, 9.01
million people received unemployment insurance in the week ending Aug. 29.
That's down from 9.16 million the previous week.
Congress has added up to 53 weeks of extended
benefits on top of the 26 weeks provided by the states.
Thursday's report comes a day after the Federal
Reserve said production by the nation's factories, mines and utilities
increased for the second straight month in August, the latest sign the economy
is recovering.
But the economy isn't improving fast enough to spur
greater hiring. Fed Chairman Ben Bernanke on Tuesday said the recession is likely
over, though he noted that the economy isn't likely to grow fast enough to
lower unemployment anytime soon.
The jobless rate is widely expected to peak next year
above 10 percent, up from its current 9.7 percent. Some analysts say that
claims need to drop below 400,000 before the unemployment rate will start to
decline.
More job cuts were announced this week. Drugmaker Eli
Lilly & Co. said Monday that it will cut 5,500 jobs over the next two
years, 14 percent of its work force, as it restructures the company into five
business units.
Among the states, Washington had the largest increase
in claims of 4,546, which it attributed to greater layoffs in the construction,
public administration, and manufacturing industries. The next largest increases
were in Pennsylvania, Massachusetts, North Carolina and Illinois. The state
data lag initial claims by a week.
California had the largest drop in claims of 2,751. The next
largest decreases were in New York, Wisconsin, Texas and New Jersey.
______
Copyright 2009 Chicago Defender. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
