revision
05-21-2009, 03:15 PM
US jobless claim falls to 631,000
Thu, 21 May 2009 14:46:06 GMT
http://www.presstv.com/detail.aspx?id=95517§ionid=3510203
Jobless claims are expected to rise in the coming weeks.
The number of US workers filing for jobless benefits has fallen 12,000 to 631,000 during the past week, amid expectations that it will go up again.
The US Labor Department data revealed on Thursday that initial claims in the week to May 16 was down by 12,000 from the previous week's revised number of 643,000.
Despite the downward trend, some experts remained to be cynical.
"To me the important number is continuing claims, which continue to steadily go up. It's not a surprise with the auto situation. They will likely head higher. It will likely cause to upward pressure on the unemployment rate to approach 10 percent, which would be the highest level since the early 1980s," said Minneapolis-based FAF chief economist Keith Hembre.
Some analysts believe the main reason behind rising unemployment rate is the beleaguered US auto industry.
Big automakers General Motors and Chrysler are passing through major restructuring plans which are expected to leave more Americans jobless amid the deepening recession.
"I think the numbers continue to show a weak economy. I would say that equities have run more ahead of reality, so I expect a pullback. If you look at the trend of the jobless numbers, the rate of slowing down isn't here," said Subodh Kumar, chief investment strategist from Subodh Kumar & Associates, Toronto.
"The companies that bring their costs under control will be the first to start hiring, but I don't think we'll see that a lot until the third or fourth quarter."
The latest monthly snapshot showed the US unemployment rate rise to 8.9 percent in April with 539,000 jobs lost.
Thu, 21 May 2009 14:46:06 GMT
http://www.presstv.com/detail.aspx?id=95517§ionid=3510203
Jobless claims are expected to rise in the coming weeks.
The number of US workers filing for jobless benefits has fallen 12,000 to 631,000 during the past week, amid expectations that it will go up again.
The US Labor Department data revealed on Thursday that initial claims in the week to May 16 was down by 12,000 from the previous week's revised number of 643,000.
Despite the downward trend, some experts remained to be cynical.
"To me the important number is continuing claims, which continue to steadily go up. It's not a surprise with the auto situation. They will likely head higher. It will likely cause to upward pressure on the unemployment rate to approach 10 percent, which would be the highest level since the early 1980s," said Minneapolis-based FAF chief economist Keith Hembre.
Some analysts believe the main reason behind rising unemployment rate is the beleaguered US auto industry.
Big automakers General Motors and Chrysler are passing through major restructuring plans which are expected to leave more Americans jobless amid the deepening recession.
"I think the numbers continue to show a weak economy. I would say that equities have run more ahead of reality, so I expect a pullback. If you look at the trend of the jobless numbers, the rate of slowing down isn't here," said Subodh Kumar, chief investment strategist from Subodh Kumar & Associates, Toronto.
"The companies that bring their costs under control will be the first to start hiring, but I don't think we'll see that a lot until the third or fourth quarter."
The latest monthly snapshot showed the US unemployment rate rise to 8.9 percent in April with 539,000 jobs lost.