Government

Unemployment Claims Rise to Highest Level in 3 Months

American Unemployment Rises More Than ExpectedWASHINGTON (AP) — The number of people applying for unemployment benefits jumped last week to the highest level in three months.

Applications have been rising over the past month, a signal that the job market remains depressed.

The Labor Department said Thursday that weekly applications rose by 11,000 to a seasonally adjusted 428,000. The week included the Labor Day holiday.

Applications typically drop during short work weeks. In this case, applications didn’t drop as much as the department expected, so the seasonally adjusted value rose. A Labor spokesman said the total wasn’t affected by Hurricane Irene.

Still, applications appear to be trending up. The four-week average, a less volatile measure, rose for the fourth straight week to 419,500.

Applications need to fall below 375,000 to indicate that hiring is increasing enough to lower the unemployment rate. They haven’t been below that level since February.

The economy added zero net jobs in August, the worst showing since September 2010. The unemployment rate stayed at 9.1 percent for the second straight month.

The job figures were weak because companies hired fewer workers and not because they stepped up layoffs, economists said. Business and consumer confidence fell last month after a series of events renewed recession fears.

The government reported that the economy barely grew in the first half of the year. Lawmakers fought over raising the debt ceiling. Standard & Poor’s downgraded long-term U.S. debt for the first time in history. Stocks tumbled – the Dow lost nearly 16 percent of its value from July 21 through Aug. 10.

Businesses added only 17,000 jobs in August, which was a sharp drop from 156,000 in July. Government cut 17,000 jobs. Combined, total net payrolls did not change.

Unemployment benefit applications are considered a measure of the pace of layoffs.

The total number of people receiving benefits dipped 12,000 to 3.73 million, the third straight decline. But that doesn’t include about 3.4 million additional people receiving extended benefits under emergency programs put in place during the recession. All told, about 7.14 million people received benefits for the week ending Aug. 27, the latest data available.

More jobs are desperately needed to fuel faster economic growth. Higher employment leads to more income. That boosts consumer spending, which accounts for about 70 percent of economic growth.

Higher gas and food prices have cut into their buying power this year. The economy expanded at an annual rate of just 0.7 percent, the slowest growth since the recession officially ended two years ago.

The weakness has raised pressure on the Federal Reserve and the White House to take steps to boost economic growth.

Many economists expect they will decide at its meeting next week to shift money out of short-term mortgage-backed securities and into longer-term Treasury bonds. The move could push down longer-term interest rates, including rates on mortgages, auto loans and other consumer and business borrowing.

President Barack Obama has proposed a $447 billion job-creation package. He wants to cut Social Security taxes for workers, extend unemployment benefits, cut taxes for small businesses and spend more federal money to build roads, bridges and other public works projects.

Republicans oppose the president’s plan, particularly after he said he wants to pay for it with higher taxes on wealthier households, hedge fund managers and oil companies.

Comments (23)

  • 1ClassicLiberal
    Posted on September 17, 2011 at 10:50pm

    Barry could reduce unemployment to Bush era numbers and help one of the hardest hit demographics with one stroke of the pen, if he actually wanted to. L&I estimates there are around 8 million illegal immigrants employed in the US. (Note Illegal Immigrants are from a host of countries including Barry’s Kenyan family members. In my corner of the Universe they are Eastern European, Mexican, and Chinese.) Of this number only about 3.4% are agriculture related. Most of the jobs are manufacturing, construction and semi-skilled labor. These are the jobs traditionally filled by 18-25 year olds, the hardest hit unemployment demographic. These are not low paying jobs nobody wants as many of us started our careers with these jobs. ICE need only enforce the laws currently on the books. FDR did it during the Depression, Eisenhower did it for returning veterans, it‘s time for Barry to give what few remaining American jobs he hasn’t chased overseas back to American workers.

    Report Post »  
  • apu123
    Posted on September 15, 2011 at 9:44pm

    When the economy in Europe finally implodes just wait until the counter-party risk between our banks and theirs takes our dead men walking banks down. BofA JP Morgan etc are about to get a smack down that will make 2008 seem like a cake walk. BNP Paribas, one of the major European banks is selling off their prime assets right now to raise capital, just like BofA. Both banks insist they don’t need the money. Why sell in a down market then? The central banks in Europe and our Fed are busy trying to backstop this catastrophe but a look at the spreads on sovereign and bank debt tell the story. Maybe three to six more months of a whipsaw market then collapse, wonder how they will spin the unemployment numbers then?

    Report Post »  
  • Dug2Dark
    Posted on September 15, 2011 at 7:38pm

    Not unemployed yet, but my hours are way down. I Know, pass the freakin bill now, pass the freakin bill now, passs the freakin bill now. No just pass me to Bill 2013, when I can prosper again.

    Report Post » Dug2Dark  
  • StacyR
    Posted on September 15, 2011 at 7:02pm

    Poor slave. The don‘t realize we don’t have to work like slave anymore. We are free, we’re just too stupid to know it. Mass unemployment is about to wake us all up.

    FIGHT THE CAUSE – NOT THE SYMPTOM
    OsiXs (Revolution 2.0 – The Smart Revolution)

    Report Post »  
  • Bernard
    Posted on September 15, 2011 at 5:52pm

    If we were to simply raise tariffs on Chinese goods to the real value of the Yuan it will force many companies to stay here and not go to China.
    If we were to create zero tax zones for foreign companies to relocate here that would also create jobs.
    If we were to lift the ban on oil drigging and exploration, and build more refinereies that means more jobs.
    If we were to cut the massive red tape that has ballooned under the Obama administration that would also help small businesses to thrive.
    If we were to do away with the Obama care and let the private sector step in, that would create jobs.
    If we were to eliminate the tens of millions of illegal immigrants taking jobs from legal Americans and shut the border that alone would save Billions and create jobs.
    If we were to down size the government and let the private sector step in that too would create jobs

    All of the above are unacceptable by our Socialist left leaning liberal President Obama and our misery just increases under his governance.

    Report Post »  
  • cosette
    Posted on September 15, 2011 at 12:33pm

    In the Bizzaro world of the mouth breathing morons, a.k.a liberals, the idiocy of Nancy Pelosi and ag. secretary Tom Vilisack is gospel because unemployment benefits and food stamps “stimulate” the economy. Ergo we can expect to come out of this recession any time now, because it won‘t be long before we’re ALL in the “gubbment ”cheese line! Good Lord make it STOP!

    Report Post »  
  • DanWesson455
    Posted on September 15, 2011 at 12:17pm

    Ding Dong, Ding Dong, Ding Dong, Hello. The truthman is commenth and he is ringing the White House Door. Never fear, Barry still won’t get it. He will still idealog right down the highway of ruination. For he is a learned man. Taught by the best commies around. Mom and Dad and Grand Ma and Grand Dad….He gets it.

    Report Post » DanWesson455  
  • HuskerDave
    Posted on September 15, 2011 at 12:11pm

    Everything the AP finds “unexpected” about these numbers was fully expected by anyone with a brain.

    Report Post »  
  • hempstead1944
    Posted on September 15, 2011 at 10:14am

    These are government numbers and do not reflect the real economic stress in the country….

    Report Post »  
    • mikenleeds
      Posted on September 15, 2011 at 11:28am

      also 15 percent of the positive numbers are part time workers and 50 percent of the whole country is on food stamps and let s don t forget about the 17 millions illegals milking our system dry

      Report Post » mikenleeds  
  • SamIamTwo
    Posted on September 15, 2011 at 10:05am

    Wait till they (bls.gov) calculates COLA rate..that should be one hell of a political football.

    Bls.gov uses the months of July, aug and sep of this year and compares it to two years ago. Last I looked it was 3.8%…

    Imagine if you will NOT handing out a 4% cola to those who have had ZERO cola for the last two years.

    Talk about rise up…now that would fit perfect with all of this jello.

    Report Post » SamIamTwo  
  • SamIamTwo
    Posted on September 15, 2011 at 9:57am

    Obama definitely owns it now. The left, independents, and weak hands should realize that now. JIMHO

    Report Post » SamIamTwo  
  • NOBALONEY
    Posted on September 15, 2011 at 9:50am

    Another repeated item in the during the Obama administration: Unemployment at 9%.

    Report Post » NOBALONEY  
  • Codger
    Posted on September 15, 2011 at 9:47am

    When is the government gonna tell the truth? The constant lying and cover-ups will just make it ever so much harder for everyone when it all comes crashing down.

    Report Post » Codger  
    • TheWholeTruth
      Posted on September 15, 2011 at 9:57am

      The truth? You mean like, we are not in a recession, that’s true. The recession did end right when the DEPRESSION started. They are telling the truth about that, they just aren’t telling the WHOLE truth.

      Report Post »  
  • Centralsville
    Posted on September 15, 2011 at 9:25am

    How’s that hope and change working out for you. I still can’t believe that Obama can always maintain a 40 percent approval rating. I don’t think anyone could do a worse job of running this country into the ground. About half of Americans are so dumb they can’t be salvaged. It’s ironic or justice that those that support Obama the most are the hardest hit, young people, blacks and hispanics.

    Report Post »  
    • INOGAWD
      Posted on September 15, 2011 at 9:33am

      49% of population on Food Stamps, Their not going to give that up…

      and he is not going to deport his base….

      Report Post » INOGAWD  
    • David
      Posted on September 15, 2011 at 9:37am

      We could pay for a lot of what we are trying to do if the people in Congress would just pay their fair share. The unemployed Americans are hurting because people in Congress continue to fly around in private jets and helicopters.

      Report Post » David  
  • alina.bolero
    Posted on September 15, 2011 at 9:12am

    … and this is surprising …. HOW?

    Report Post » alina.bolero  
    • INOGAWD
      Posted on September 15, 2011 at 9:28am

      There is only one Job Obama’s working on, HIS….

      Report Post » INOGAWD  
  • MONICNE
    Posted on September 15, 2011 at 9:02am

    This is good news, the private sector grows, and the public sector shrinks.

    TEA

    Report Post » MONICNE  

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