Jobless Claims in U.S. Increase More Than Economists Forecast to 464,000

[marmar]

By Shobhana Chandra


July 22 (Bloomberg) -- More Americans than projected filed applications for unemployment benefits last week, a sign firings remain elevated even as the economy is expanding.

Initial jobless claims jumped by 37,000 to 464,000 in the week ended July 17, exceeding the highest estimate of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The survey median projected claims would climb to 445,000. The number of people receiving unemployment insurance and those getting extended payments dropped.

The figures underscore projections that a lack of jobs will restrain consumer spending, the biggest part of the economy, and lead to slower growth in the second half of the year. It will probably take a “significant amount of time” to restore the almost 8.5 million jobs lost in 2008 and 2009, Federal Reserve Chairman Ben S. Bernanke told Congress yesterday.

“Underlying demand for labor is fairly sluggish,” said Omair Sharif, an economist at RBS Securities in Stamford, Connecticut, who had forecast claims would rise to 460,000. “If that continues, it will have an impact on wages and salaries and clearly have some negative implications for consumer spending.” ...........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=a.gKjTz_h3pw&pos=2

[NightWatcher]

1. 3 possible retorts: 1.Damn lazy bastards. 2.you'd think it's a Depression. Or

3. Welcome to the New Normal. Tax cuts for the Rich, short cuts for the rest of us.

[OhioChick]

2. +1 n/t