Those Americans still seeking unemployment benefits is still unchanged from last week. This is proof that no new jobs have been created. Unemployment benefit applications ticked down 1,000 to a seasonally adjusted 428,000, the Labor Department said Thursday. For 12 straight weeks, applications have topped 400,000, even though they fell to 375,000 in February.
They stayed below 400,000 for seven of nine weeks. But applications then surged to an eight-month high of 478,000 in April and have shown only modest improvement since that time. The 426,000 figure has stalled in the last month.
“Another disappointing report,” Jennifer Lee, an economist at BMO Capital Markets, wrote in a note to clients. “This report does nothing to reassure anyone that the job environment is improving.” Peoplepc
But rise in applications have had little effect on Wall Street, as stocks still rose on Thursday. In May, employers only added about 54,000 jobs. To keep up with the population growth, each month, the economy must create at least 125,000 jobs.
Gas prices have fallen steadily in the past two months since peaking in early May at an average of nearly $4 a gallon. On Thursday the national average was $3.54 per gallon, according to AAA. And economists predict the impact of the parts shortage should begin to fade this summer. But still, the economy isn’t growing fast enough. Last week, the economy only grew 1.9%.
Then on Wednesday we have the IMF butting in, saying that Congress must raise the debt ceiling, inorder to prevent another global crisis.
Last week, the Federal Reserve acknowledged that the economy has slowed in recent months. Fed officials said that “recent labor market indicators have been weaker than anticipated.” Peoplepc
The number of people receiving unemployment benefits fell 12,000 to 3.7 million, the fewest in about two months. But that doesn’t include millions of additional laid-off workers who are receiving extended benefits under emergency programs put in place during the recession. All told, about 7.5 million people received unemployment benefits in the week of June 11, the latest data available. Peoplepc
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