Skip to comments.Unemployment rises sharply
Posted on 10/19/2012 3:25:31 PM PDT by stocksthatgoup
Weekly applications for U.S. unemployment benefits jumped 46,000 last week to a seasonally adjusted 388,000, the highest in four months. The increase represents a rebound from the previous week's sharp drop. Both swings were largely due to technical factors.
The four-week average of applications, a less volatile measure, rose slightly to 365,500, the Labor Department said Thursday. That is still a level consistent with modest hiring.
Last week, California reported a large drop in applications, pushing down the overall figure to the lowest since February 2008. This week, it reported a significant increase. The gyrations occurred because it processed applications last week that were delayed from the previous week.
A department spokesman said the seasonally adjusted numbers "are being distorted ... by an issue of timing."
Applications are a proxy for layoffs. When they consistently fall below 375,000, it suggests hiring is healthy enough to lower the unemployment rate.
Several economists simply calculated the average of the two distorted weeks, which is 365,000. That's in line with the recent trend. But it's modestly improved from September, suggesting that hiring could be a bit better this month.
"Though still struggling, the U.S. labor market appears to be making headway, and we should see a modest improvement in October ... payrolls," Sal Guatieri, an economist at BMO Capital Markets, said in an email to clients.
The number of people receiving benefits fell. Just over 5 million people received unemployment aid in the week ending Sept. 29, the latest data available. That was about 40,000 fewer than the previous week.
(Excerpt) Read more at gopusa.com ...
So I guess this means the unemployment is now 5%, right?
Claims for benefits under 375K are NOT consistent with modest reductions in the unemployment rate. Unless the workforce is shrinking dramatically.
The workforce is shrinking faster than the economy!
I wonder what the UNEMPLOYMENT RATE would've been if California reported on time... 7.8%, I would DOUBT IT!!
I think O gave Gov Jerry the Brownnose $$$ not to report last week!!
It’s our fault for not buying more Chevy Volts.
It is all a ruse. Practical examination of the populace, the mean family income statistic and the cost of welfare are better indicators...and all point to America in the toilet because of King Bozo Overkill.