Unemployment Applications Fall, But Remain High
- Posted on June 16, 2011 at 9:00am by
Jonathon M. Seidl
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WASHINGTON (AP) — Fewer Americans applied for unemployment benefits last week, though applications remain above levels consistent with a healthy economy.
The Labor Department said Thursday that unemployment benefit applications fell 16,000 to a seasonally adjusted 414,000, the second drop in three weeks. That’s a positive sign that layoffs are slowing.
Still, applications have been above 400,000 for 10 straight weeks, evidence that the job market is weak compared to earlier this year.
Applications had fallen in February to 375,000, a level that signals sustainable job growth. They stayed below 400,000 for seven of nine weeks. But applications surged in April to 478,000 – an eight-month high – and they have declined slowly since then.
The four-week average, a less volatile measure, was unchanged.
The elevated level of applications suggests that companies pulled back on hiring in the face of higher gas and food prices, which have cut into consumer spending. Hiring has slowed sharply since applications rose.
Employers added only 54,000 net new jobs in May, much slower than the average gain of 220,000 per month in the previous three months. The unemployment rate rose to 9.1 percent from 9 percent.
The economy needs to generate at least 125,000 jobs per month just to keep up with population growth. At least twice that many are needed to bring down the unemployment rate.
But economists forecast the nation will add only about 1.9 million jobs this year, according to an Associated Press Economy survey earlier this week. That’s only about 150,000 per month and is lower than a previous estimate two months ago.
More hiring is important because it‘s key to boosting consumers’ incomes, which in turn would fuel more spending. Consumer spending grew at a weak 2.2 percent annual rate in the January-March quarter, down from 4 percent in the previous quarter. That pushed down economic growth to 1.8 percent from 3.1 percent.
The economy is expected to improve by the second half of this year. Gas prices have fallen by nearly 30 cents per gallon since peaking in May at a national average of nearly $4 per gallon. And manufacturing output, which declined in April, should improve once parts shortages stemming from Japan’s March 11 earthquake ease.
Lower gas prices should enable consumers to spend more on other goods. That will likely push economic growth back to a 3.2 percent pace in the second half the year, according to the AP survey of economists.
Yet some companies are cutting jobs. Johnson & Johnson said Wednesday that it will stop making some of its heart devices because sales have fallen, a move that will eliminate up to 1,000 positions. Some of those cuts will be overseas.
And state and local governments are laying off thousands of employees in order to close large budget deficits. On Tuesday Los Angeles’ school district approved a plan that would cut 2,000 jobs in the 2011-2012 school year.
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Comments (47)
FANGS
Posted on June 16, 2011 at 3:26pmOK here’s the deal, As an employer I know that No one will hire until obama, The dems and the Unions are extinct and out of power. Once again, Get rid of Obama, the Dems and the Unions. One week after that happens I guarantee there will be at least 1.5 million new hires. Revolt Now and Save Your lives and America. Your employers will put up the funds for any weapons and ammo. God Speed.
Report Post »Gonzo
Posted on June 16, 2011 at 12:24pmWhen new unemployment applications are 4 times the number of jobs created, how can unemployment fall? Nice math AP.
Report Post »redbrown02
Posted on June 16, 2011 at 11:49amWell as long as we are running out of people to sign up for the lazy good life the numbers will look good! I just got unemployed, and I am here to tell ya, NO ONE IS HIRING!!!!!!
Report Post »gpk
Posted on June 16, 2011 at 11:37amBlivet packers needed. Please call Barry.
Report Post »miles from nowhere
Posted on June 16, 2011 at 11:08amIs big Mac hiring more illegal aliens? Obama must be real proud!
Report Post »POIPNE
Posted on June 16, 2011 at 11:07amIs it just me or is it possible that fewer people HAVE jobs to begin with and therefore, fewer people are being forced to APPLY for unemployment? Counting applications seems to be a stupid way to judge the situation in the first place. Eventually, you’ll run out of people.
Report Post »SUPPLY_SIDE
Posted on June 16, 2011 at 11:44amBingo!
Report Post »yazoo
Posted on June 16, 2011 at 11:06amSay,no one told me that McDonalds is hiring again.
Report Post »OC Patriot
Posted on June 16, 2011 at 11:04amGo to http://www.shadowstats.com to see how this Administration Continually Manipulates the numbers to fit their Agenda! It’s Interesting to Witness this & Compare the Difference! Pay Close Attention to how Often the Numbers are Revised After the Media Announces the Administration’s Version!!
Report Post »yazoo
Posted on June 16, 2011 at 11:04amMcDonalds must be hiring again!
Report Post »POIPNE
Posted on June 16, 2011 at 11:10amAh, the smell of french fries in the morning, smells of victory!
Report Post »santramir
Posted on June 16, 2011 at 11:00amzionism has proved wrong in every thing: from economics to politics, from entretainment to punishment, zionism is the world conmdenation to enlsavery and misery for the pleasure and power of the self chosen elites
Report Post »love the kids
Posted on June 16, 2011 at 10:55amHow many times do you want to un-employed people to fill it out. Heres an idea, how about we have everyone who right now is unemployed and looking for a job, fill out a 1 page form with SS number so we can get an accurate count of unemployed? There are plenty of Govt. workers to handle this update.
Report Post »adiospantalones
Posted on June 16, 2011 at 10:44amLiberals…shoot the arrow then draw the bullseye. If we used the same reporting techniques as we did just 10 years ago, the public would see that unemployment is at about 13%, if you add in the underemployed, it is 22%, and inflation would be at about 27% right now based on commodity prices.
Perspective…Jimmy Carter had unemployment at only 5.8% with 11.3% inflation in 1979.
Report Post »wewantchillywilly
Posted on June 16, 2011 at 10:30amWe own it!
Report Post »conservativemom99
Posted on June 16, 2011 at 10:13amAnd every time any report comes out like this one, Obama spins it to be a positive while those out of work feel like their world is collapsing around them…
Report Post »I can’t imagine how that would make THEM feel…but he doesn’t care…it’s all about HIM. sick.
boats48
Posted on June 16, 2011 at 10:06amAnyone notice that this report is for “first time filers?” It doesn’t take into consideration the folks already collecting unemployment or who have used up their benefits. All this states is fewer people lost their jobs last week than the week before! Not good!
Report Post »Soul Leister
Posted on June 16, 2011 at 9:54amIf this administration was honest (insert laughter here) they would use the same method of counting the unemployed the democrats used when Bush was president… but that would put unemployment for Obama in double digits… and their messiah just can’t be tarnished with the truth… how else will they find the shining light from tunnel of his backside to put their heads in?
Report Post »The Toad
Posted on June 16, 2011 at 9:52amAre Bachmann & Pawlenty Corrupt Politicians? http://j-simmaans.newsvine.com/_news/2011/05/02/6570344-pawlenty-bachmann-sought-pardon-for-minnesota-donor-accused-in-ponzi-scheme-the-daily-beast-
Report Post »The Toad
Posted on June 16, 2011 at 9:50amSara Palin beats Romney in New Poll!! http://thespeechatimeforchoosing.wordpress.com/2011/06/16/economistyougov-poll-sarah-palin-20-mitt-romney-14/
Report Post »Hephzibah
Posted on June 16, 2011 at 9:43amHow many have given up and how many have accepted unsatisfactory jobs (just to be working) at much lower pay? These polls mean nothing except to prove the media is useless and BHO is successfully in killing our country.
Report Post »REETZBEE
Posted on June 16, 2011 at 10:38amI can’t even find a crap job for $8/hr because they think I‘m over qualified and they don’t take me seriously. I‘m hoping for a return call from the lady who’s looking for someone to pull her weeds over the summer. This is really pathetic.
Report Post »hcayUSA
Posted on June 16, 2011 at 10:47amAnd what does one week trending down truly mean? Maybe many couldn’t afford the gas to get to the unemployment line or maybe they were just unable to get in due to some extreme reason. These reports based on a 1week trend are garbage & hole no real weight. BUT this is how the liberal media is able to blind the masses! Sickening!
Report Post »Cold War Vet
Posted on June 16, 2011 at 10:49pm@ HEPHZIBAH
Absolutely correct! A huge portion of America is still unemployed, including the millions whose benefits have been exhausted, and are no longer on the rolls. In reality, it’s closer to 20%. Of course Obama and the liberals (and the MSM!) try to paint this rosy picture of our economy. What’s really scary is, those jobs are GONE, and they are not coming back.
Lest anyone get conned, anything the dems try to take credit for (like gas prices) is an attempt to get reelected. It’s just posing and posturing for the media.
Report Post »Slayer
Posted on June 16, 2011 at 9:41am“We own the economy.”
- Debbie Wasserman-Schultz
An economy in shambles.
Report Post »A foreign policy in tatters.
$14 trillion deficit.
The Democrat Party broken, having lost 700+ seats.
Obamacare, the crown jewel of the Obama presidency declared unconstitutional with over half the states suing to get out.
Raiding the public pension to avoid the debt ceiling.
Gas, food, clothing prices skyrocketing.
Five endless wars, Afghanistan now with a record death toll.
The Middle East in turmoil and the President throws a Motown concert with his corporate millionaire Democrat pals.
POIPNE
Posted on June 16, 2011 at 10:55amThrow in a few natural disasters (tornadoes/floods in the midwest & fires in Texas) and you’ve pretty much summed it up.
Report Post »cntrlfrk
Posted on June 16, 2011 at 9:27amThe economy will eventually recover, if nothing else, on paper. As more people fall of the working roles of being considered as ‘looking for work’ and decide to be professional student or welfare recipients, the numbers will look better.
The Republicans need to continue to hammer Obama on his anti-Business job killing policies, but Obama is getting a free pass from the media by claiming any unemployment numbers less than 9% is success.
I said this originally, that Obama and his thugs were purposely driving the economy down as long as they could blame it on Bush, he can’t do that any more.
.
Report Post »BOMUSTGO
Posted on June 16, 2011 at 9:33amCommunism looks good on paper.
Report Post »Darla_K
Posted on June 16, 2011 at 9:20amWho is doing the numbers on this?
Report Post »SpankDaMonkey
Posted on June 16, 2011 at 9:27am.
Report Post »No Who is in charge of national security, WTF is in charge of the numbers……
IMPEACHBHO
Posted on June 16, 2011 at 9:12amOur unemployment would be back down to 5-6%, with a much stronger dollar, and two wars less, if it wasn’t for BHO and his insistence on destroying our country. And no, not Bush’s recession. It was a housing bubble recession, one that Bush warned the Dems. about Fannie & Freddie. Others responsible are those like ACORN and the Barney Franks.
We would have been far better off if we had NO president elected, as this one (really a dictator) has made a bump in the road a hole a 1,000 miles wide and a 1,000 miles deep.
Report Post »cowdude
Posted on June 16, 2011 at 9:09amHow can anyone even start to say NEW APPLICATIONS for unemployment are in good shape or seriously trending down with 400k plus jobs lost? Unemployment numbers from 16% to 15.9% is a trend down but is it significant? I THINK NOT!
Cowdude
http://conservativewatercooler.com
Report Post »SamIamTwo
Posted on June 16, 2011 at 9:13amYeppers, it’s worse than the carter days and the msms just keep on playing it as though nothing was wrong.
Report Post »SpankDaMonkey
Posted on June 16, 2011 at 9:02am.
Report Post »The 99er’s are droping off the rolls………
Ironmaan
Posted on June 16, 2011 at 9:12amMcDonalds hired 65000 people last month.
Report Post »http://guerillatics.com
Blackhawk1
Posted on June 16, 2011 at 9:21amI wonder what fuzzy math they will use to get the rate under 9% now that the DNC chair claimed the Democrats own the economy?
Report Post »hauschild
Posted on June 16, 2011 at 9:21amIt’s sad how the AP shills for a bankrupt ideology.
“That’s a positive sign that layoffs are slowing.” – how many F’ing times do these nitwits expect reasonable minds reading their tripe to buy into this? According to the AP, every odd week, lay-offs are slowing and every even week global warming effects cause more unemployment. I mean, for the love of Pete, this type of coverage has been going on for over two years now?!?!? WTF???
Report Post »SpankDaMonkey
Posted on June 16, 2011 at 9:22am.
The title of this story is a Oxymoron…Unemployment Applications Fall, But Remain High…
Only the uneducated masses believe this Crap……
Report Post »biohazard23
Posted on June 16, 2011 at 9:43amLet’s see how they trolls will spin this to make their messiah look good.
Report Post »psst
Posted on June 16, 2011 at 9:45amSpak said:“Only the uneducated masses believe this Crap”
Report Post »—
Yeah, but the news said 45 % of the workers pay no fed taxes and I think over 50% of the voters (legal & Illegal) will vote again for Soetoro.
IMO. that 45% is a little low, I would say about 51%
Methinks the uneducated masses you speak about are included on those above I listed.
When a tax cheat can become SecTreas (the Elf Geithner)
When a congressman who writes the tax codes is a tax cheat (Rangel) and gets re-elected.
When a communist moslem (IMO probably illegal to be) is prez of the US
We tell people who can’t seem to support themselves that they can keep breeding and breeding and the taxpayers will care for them and as many more as they care to make, because we are awashed w/ money.And they believe it.
Well!! It best to say it out aloud.
US is a doomed country. US is “past” the point of no return.
Like the Greek majority who are hooked on government goodies as their country goes down the tubes.
So too will this happen. here. 20-25 yrs tops.
MidWestMom
Posted on June 16, 2011 at 10:05am@ – psst
Report Post »I don’t think we have 20-25 years….. two years max
TomFerrari
Posted on June 16, 2011 at 10:21ammsnbc – “this just in – the economy has fully recovered, thanks to our savior, obama. all praise him.”
“applications for unemployment have PLUMMETED this month”
“let’s give a standing ovation to obama for saving us from evil capitalism”
That‘s about how I think they’ll spin this, based on their track record.
Report Post »biohazard23
Posted on June 16, 2011 at 10:51am@Tom, you nailed it spot on. :)
Report Post »poorrichardsnews
Posted on June 16, 2011 at 11:22amI hope everyone on here realizes that Romney is practically just as bad as Obama. Mitt Romney is a liberal. Remember, he supports the TARP bailouts. He actually said that TARP is responsible for saving EVERY JOB in America: http://poorrichardsnews.com/post/6580291059/mitt-romney-is-a-liberal-part-1-romney-supported-tarp
Report Post »cemerius
Posted on June 16, 2011 at 11:41am@psst
We will have to be torch bearers for our Republic….if I have to live in a small community cut off from the rest of the world I will at least have a copy of the Bible, the U.S. Constitution and the Declaration of Independence……The USA may currently be doomed but she will be a Phoenix and rise out of the ashes to continue to shine as a beacon to the rest of the world! God Blessed the USA and she will always be in my heart and soul…..Semper Fi
Report Post »DisillusionedDaily
Posted on June 16, 2011 at 5:38pmI am afraid it will remain high for the rest of the year. Obama is killing jobs faster than the US government can expand.
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