Accentuating the good concerning United States of America Jobless claims is possible, depending on how you look at the statistics. The number of people filing for unemployment rose last week. However, the number was lower than analysts forecasted. Individuals are getting employed, however insufficient to make up for the ones getting fired, a stasis that is reflected in the unemployment rate, which has been stuck at 9.6 percent and shows no signs of imminent movement. Article resource – Jobless claims trend downward, but unemployment rate still stuck by Personal Money Store.

The reason why we don’t see a change in the unemployment rate

The Labor Department reports that jobless claims went up 2,000 to 439,000 last week. Based on the Associated Press, in three of the last four weeks there have been less people filing for joblessness than there have been in two years; it has just been at the highest 440,000 max. Over the past month, jobless claims dropped by 16,000 to an average of 443,000 per week — a 4.2 percent average decrease. It means that fewer people are getting fired and more are getting hired. This is exactly what AP suggests. But economists say jobless claims must fall below 425,000 a week to put a dent within the unemployment rate.

The jobless issue

Within the week that ended November 6, 48,000 individuals stopped claiming joblessness although hundreds of individuals each week keep filing jobless claims. Getting employed is not the only reason this happens. It might be for other reasons. Within the last week of Oct, 121,000 people moved to the federal joblessness extension program after unemployment advantages expired. Benefits from the emergency expansion program will expire when November is over. This indicates 2 million people will lose them. Another 2 million will lose advantages in the next few months. It’s unlikely a lame-duck congress could be able to pass another federal joblessness extension.

These specifics are not generating things apparent

When Jobless claims drop, in theory really, this ought to mean the economic recovery is doing better, which is why economists keep track of weekly firings. Based on Bloomberg, that relationship isn’t there anymore. This current economic recovery does not employment that way. October was the fourth month in excess of 100,000 jobs being created since companies added 159,000 jobs. You will find a ton of corporations hiring. The majority are lying off individuals though. Forty-two states and United States of America territories reported increasing jobless claims, while 11 reported a decline. There is still a 9.6 unemployment rate that will not change though and that is the truth that can be continually remembered.

Articles cited

Associated Press

google.com/hostednews/ap/article/ALeqM5hog5HM6YtSPvQ1KRg8oIM4BznnEA?docId=4c61b3bcd52d492c8347b0c63629c446

Bloomberg

bloomberg.com/news/2010-11-18/jobless-claims-in-u-s-increased-less-than-estimated-to-439-000-last-week.html

Forbes

forbes.com/2010/11/18/jobless-data-retail-markets-equities-spending.html?boxes=marketschannelnews