Friday, December 18, 2009

Unemployment Claims Rise Unexpectedly

Despite predictions of a decline, unemployment claims in the U.S rose by 7,000 last week for a total of 480,000. Leading economists had expected the number of claims to decrease to 465,000, however the opposite turned out to be true. This news is especially trouble as holiday season usually brings additional employment opportunities. Checkout the following article from on the startling announcement.

There were 480,000 initial job claims filed in the week ended Dec. 12, up 7,000 from the previous week's revised 473,000, the Labor Department said.

A consensus estimate of economists surveyed by expected claims to decline to 465,000.

The 4-week moving average of initial claims totaled 467,000, down 5,250 from the previous week's revised average of 472,750.

This marks the second consecutive week that claims have climbed. But weekly claims have proven to be volatile with some pops but overall maintaining a downward trajectory. Analysts say that's normal for this time of year.

"With all the seasonal factors in play at this time of year, I'm not going to get too concerned over a couple of weeks of increases," said Robert Dye, senior economist at PNC Financial Services Group. "I expect the downward trend to steadily continue, but it wouldn't surprise me if we get another erratic week or two."

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