Jobless claims increase from previous week, but there are some improvements

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Today’s jobless claims report wasn’t as good as hoped for as 551,000 jobless claims were reported last week, or 17,000 more than the reported number the previous week. On the brighter side of this report, the four-week jobless claims moving average continued to decline and now stands at 548,000, which is 6450 less than the previously reported number.

The fine people at Calculated Risk use the following chart to track the important four-week moving average:



BLS- UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

The continuing claims number showed some improvement, but since thousands are now exhausting benefits, the decrease is not related to more hiring. From the BLS report:

The advance number for seasonally adjusted insured unemployment during the week ending Sept. 19 was 6,090,000, a decrease of 70,000 from the preceding week's revised level of 6,160,000. The 4-week moving average was 6,154,500, a decrease of 39,250 from the preceding week's revised average of 6,193,750.
BLS- UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

The extended benefits approved by the House will keep the extended claims number at higher levels than would be expected if those benefits were not extended.

The report shows that while jobless claims have leveled off, they remain at high levels and it’s not likely to improve substantially until hiring improves dramatically.

On a more positive note, companies are planning to layoff fewer workers:

Fewer layoffs: A separate report from outplacement firm Challenger, Gray & Christmas said its data showed stabilization in the job market.

Monthly layoff announcements fell in September to 66,404 job cuts, down 13% from August. That's the lowest level since March 2008, and the September figure was 30% lower than the same month a year ago, when employers announced 95,094 job cuts.

It was the fourth consecutive month in which job cuts declined from the year-ago level.

As is the case with most of the latest economic reports, there is good news and bad news, but that is certainly preferable to the all-bad economic news reports of earlier this year.

Are you seeing better job opportunities in your area? Do you know anyone who has exhausted unemployment benefits?