Posted on 03/05/2015 7:31:58 AM PST by SeekAndFind
Initial jobless claims unexpectedly jumped to a nine-month high last week, an indication that severe winter weather could be putting a temporary freeze on the labor market's recovery.
About 320,000 people filed for first-time unemployment benefits last week, up 7,000 from the previous week, the Labor Department said Thursday.
Economists had been expecting claims to fall to 300,000. Claims below that level indicate a strong labor market.
Private sector added 212,000 jobs last month, down from January, ADP says Private sector added 212,000 jobs last month, down from January, ADP says In another read on the jobs market, planned layoffs by U.S. businesses were down 5%, to 50,579, in February from the previous month, career counseling firm Challenger Gray & Christmas Inc. said Thursday.
But announced layoffs are running higher this year than last year, the firm said.
The weekly jobless claims figure can be volatile, but last week was the second straight jump and brought claims to their highest level since May.
The less-volatile four-week average rose by 10,250, to 304,750.
The recent upward trend probably was caused by bad winter weather, particularly in the eastern U.S., said Ian Shepherdson, chief economist at Pantheon Macroeconomics. Snowstorms can lead some businesses to temporarily lay off workers.
Claims have been running below 300,000 for most of the previous six months as job growth has picked up.
(Excerpt) Read more at latimes.com ...
Lots of layoffs here in the oil patch. Major service companies shedding workers, small contractors who bought new equipment are finding themselves having it repossessed for non-payment. Our small company has laid off 20% of our workers and the rest are required to take a 20% pay cut.
While the rest of the country celebrates low gas prices, the trickle down effect in the oil industry leads to less jobs for others who rely on those workers to support locally-based small businesses such as stores and construction. All leads to a rise in unemployment claims and a continuing stagnant economy.
Obvious solution = more taxes and regulations (sarcasm)
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