Initial jobless claims rise to highest level since 1982

[cal04]

Source: CBS Marketwatch

ONGOING JOBLESS CLAIMS HIT FRESH RECORD AT 5.73 MILLION, U.S. WEEKLY DATA SHOW

First-time claims for state unemployment benefits rose a seasonally adjusted 12,000 in the week ended March 28, hitting the highest level since October 1982, the Labor Department reported Thursday. These initial claims totaled 669,000, a level that is up 72% from the same period in the prior year. The four-week average of these initial claims rose 6,500 to 656,750 - also the highest level since October 1982. For the week ended March 21, the number of people collecting state unemployment benefits reached yet another new record, jumping 161,000 to 5.73 million - a level that is 96% greater than in the prior year. The four-week average of these continuing claims rose 163,500 to a record 5.5 million. The insured unemployment rate - the proportion of covered workers who are receiving benefits - rose to 4.3% from 4.2%, reaching the highest level since May 1983.

Read more: http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BCB321E21%2DDD96%2D445E%2DAEC3%2D35DBBC525CDD%7D

[WCGreen]

1. It is a slightly disengenuise to compare numbers...

In 1982, the labor market was considerably smaller than it is today. The best comparision would be percentage of the work force.

[BrklynLiberal]

2. Percentages are a better indicator

http://www.dollarsandsense.org/blog/2009/03/unemployment-rate-on-par-with-1982.html

Unemployment Rate On Par With 1982 Recession

<snip>

The report, "Is the U.S. Unemployment Rate Today Already as High as It was in 1982?," adjusts the current unemployment rate to account for demographic and statistical differences that lower the unemployment rate today by 1.4 percentage points, relative to the official unemployment rate in 1982. After these adjustments, the current unemployment level rises to 9.5 percent, a level that is close to the 1982 average of 9.7 percent.

"After accounting for these demographic and statistical differences, today's unemployment rate rises to 9.5 percent, already on a par with the worst recession since the Great Depression," said Schmitt.

The report notes that the population today is substantially older than it was in the early 1980s, which has the effect of lowering the unemployment rate today relative to the past. Young people have a higher unemployment rate than older workers because the young change jobs more frequently and are more likely to move in and out of the labor force. In 1982, about 22 percent of the labor force was between the age of 16 and 24- in 2008, 16-to-24 year olds were only about 14 percent of the labor force. As a result, the age of the typical US worker has risen from 35 in 1982 to about 42 today. Adjusting for this aging of the population raises the unemployment rate in 2009 by 1.2 percentage points.

<snip>

[customerserviceguy]

3. That's some cute fiddling with numbers, but

older workers are viewed in the same light as suicide bombers, when employers consider what the health insurance budget is going to be for next year. It really is more difficult for us to get hired, our experience is devalued if we are incorrectly perceived at being only good at doing the papershuffling skills of the 70's, rather than the computer-literate skills of this decade.

At least younger workers have decades to build up 401K's and savings, older workers who got hit hard in the last year and a half have far less time to recover.

[BrklynLiberal]

6. Tell me about it....

My 401K is long gone....

[customerserviceguy]

7. Yeah, I wish mine came with some 401KY !!!

just to make it a bit less painful...

[BrklynLiberal]

8. LOL....

I guess one must maintain a sense of humor...or all is lost..
:rofl: :rofl: :rofl:

[rfranklin]

4. Stock market says "Wahoooo!"

"We don't need no stinkin' jobs!"

No, they are going to make prosperity out of thin air and quant formulas that show there is no risk if you just create the proper credit default swaps.

[OhioChick]

5. And only to rise..... n/t