| US Jobless Claims Rise More than Expected |
| Thursday, 22 July 2010 | |||
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The increase was far bigger than the average analyst forecast of 445,000. It was the first time this year that new claims had not fallen more than two weeks in a row, pointing to persistent weakness in the labor market, where the unemployment rate stood at a historically high 9.5 percent last month. Labor Department officials have said that the most recent drop in weekly claims was due, in part, to a decline in temporary layoffs. General Motors, the leading US automaker, has skipped its normal summer shutdowns. "We think the increase is partly attributable to the cancellation of its usual two-week summer shutdown by GM, which resulted in lower-than-expected jobless claims last week and likely pushed the number higher this week," said Michael Gapen, an analyst at Barclays Capital. The four-week moving average of initial claims, which helps to smooth out week-to-week volatility, was 456,000, an increase of 1,250 from the previous week's revised average. The claims report came as President Barack Obama and Congress, controlled by his Democratic Party, move to extend unemployment benefits as the economy struggles to recover from severe recession that has wiped out more than eight million jobs. The Senate voted Wednesday to restore unemployment benefits to help some 2.5 million Americans ahead of November mid-term elections shaped by deep voter anger at high joblessness. The legislation was expected to clear the House of Representatives on Thursday and go to Obama to sign into law. "Tonight, the United States Senate finally overcame weeks of parliamentary roadblocks by a partisan minority, and voted to restore desperately needed unemployment insurance," Obama said in a statement after the vote. "I thank the members of the Senate who stood on the side of these working families today, and urge members of the House to pass this extension so I can quickly sign it into law." |
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