Economy Alarm: Jobless Claims Hit Nine-Month High
Economists Forecast “Uncomfortably High” Unemployment as the Economy Continues to Bleed Jobs
Vice President Biden Promised This Would Be a “Recovery Summer”
“Vice President Joe Biden Thursday helps kick off what the White House calls “Recovery Summer,” a six week long push to highlight what the administration says will be jobs created this summer and fall by a surge in federal stimulus spending across the country.” (Dan Lothian and Paul Steinhauser, “White House begins new Stimulus push,” CNN, 6/17/2010)
Credibility Crash: Economists Forecast High Unemployment as Jobless Claims Hit Nine-Month High
New U.S. claims for unemployment benefits unexpectedly climbed to a nine-month high last week, government data showed on Thursday, yet another setback to the frail economic recovery.
Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 500,000 in the week ended Aug. 14, the highest since mid-November, the Labor Department said.
Analysts polled by Reuters had forecast claims slipping to 476,000 from the previously reported 484,000 the prior week, which was revised up to 488,000 in Thursday’s report.
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The four-week average of new jobless claims, considered a better measure of underlying labor market trends as it irons out week-to-week volatility, rose 8,000 to 482,500, the highest since early December.
Claims for unemployment benefits have been stuck at lofty levels for much of this year, which many economists say points to unemployment staying uncomfortably high for some time. (“Weekly Jobless Claims Post Surprise Jump, Hit 500,000,” Reuters, 8/19/2010)