U.S. weekly initial jobless claims rise to 455,000
Claims stay unusually high as more workers qualify under programBy Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) -- First-time claims for state unemployment benefits remained unusually high in the latest week as more workers qualified for regular benefits under an unrelated extended federal benefits program, the Labor Department reported Thursday.
Claims for the week ended Aug. 2 rose to 455,000, a gain of 7,000 from the prior week. The figure was the highest in more than six years.
Many economists see claims above 400,000 as a sign of recession.
A Labor Department spokesman said claims are elevated due to more workers coming into the system who otherwise wouldn't without the benefits program having been recently extended under legislation signed into law by President Bush.
Claims will probably remain unusually high for several weeks, the spokesman said.
On Tuesday, the Federal Reserve acknowledged in its post-meeting statement that labor markets have softened. The Federal Open Market Committee decided to keep its benchmark federal funds rate unchanged at 2%.
Initial claims consistently above 350,000 signal some weakening in the labor market.
The four-week average of new claims, which measures the underlying trend, rose by 26,750 to stand at 419,500, the highest since July 2003.
Continuing unemployment claims, meanwhile, also increased, rising by 31,000 to 3.3 million, in an indication that it remains difficult for many workers to find a job.
The continuing claims number was the highest since December 2003. Continuing claims have consistently been above 3 million since mid-April. ......(more)
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