Monday, October 26, 2009

US jobless claims drop to nine-month low | Business Breaking News | News.com.au

(CFD.net.au – Contract for Difference, Share, Forex, ETFs, Commodities Traders) –

The seasonally adjusted number of claims in the week to October 3 fell by 33,000 to 521,000 from the previous week’s revised figure of 554,000, the US Labor Department said overnight.

It was much lower than the 540,000 forecast by most economists and the lowest level since January 3, when th …



The seasonally adjusted number of claims in the week to October 3 fell by 33,000 to 521,000 from the previous week’s revised figure of 554,000, the US Labor Department said overnight.

It was much lower than the 540,000 forecast by most economists and the lowest level since January 3, when the number of new claims was 488,000.

The four-week moving average, which smooths out week-to-week volatility, also fell, by 9,000 to 539,750 from the previous week’s revised 548,750.

The total number of Americans receiving unemployment benefits shrank, too.

According to the department’s figures, the number for seasonally adjusted insured unemployment during the week ending September 26 was 6.04 million, a drop of 72,000 from the preceding week’s revised level of 6.112 million.

Most economists had expected a higher 6.105 million figure.

The department’s weekly report offers one of the most up-to-date snapshots of the job market, critical to economic momentum.



Although the level of new claims is still far too high, analysts say it is heading in the right direction as most government and private data point to a US recovery from one of the most brutal recessions since December 2007.

“Four declines in the past five weeks, taking the claims down to 521,000 from 576,000, looks like a healthy trend to us,” said Ian Shepherdson, chief US economist for High Frequency Economics.

For the labour market to balance, claims will have to reach around 350,000, said Michael Bratus, an analyst at Moody's Economy.com.

The current trend signalled that the unemployment rate was nearing its peak, he said, forecasting the jobless rate to climax just above 10 per cent in the first half of 2010.



Source: US jobless claims drop to nine-month low | Business Breaking News | News.com.au

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