New jobless claims stay below 400,000
Despite the first rise in a month the number of new claims for jobless benefits in mid-October held below 400,000 for the fourth straight week, the government said Thursday. Some analysts believe the unemployment rate may fall if claims stay below 400,000. The rate was 7.5 percent in September. At the same time, the closely watched four-week moving average of claims posted its best showing in more than two years. pennystocks
“I think it’s a ray of hope that the labor market may be showing signs of improvement in October,” said economist Stephen S. Roach of Morgan Stanley & Co. in New York. The report also was welcome news for the Bush administration, with its handling of the economy on the line in an Election Day just five days away. “Today’s initial unemployment claims report continues a trend pointing to an improved labor market,” said Labor Secretary Lynn Martin. “Claims declined by more than 1,000 in 15 states and increased by more than 1,000 in only one state. All of this indic a t es a s t r o n g er l a b or market.The Labor Department said first time applications for unemployment insurance rose 8,000 to 375,000 for the week ended Oct. 17. Marilyn Schaja, an econo mist with Donaldson, Lufkin & Jenrette Securities Corp. in New Yo r k, not ed t h at a lthough claims rose slightly, t h e re we re f e w er l a v o f fs across a range of industries. The four-week moving average, which tends to smooth out the often volatile weekly fluctuations and is considered a more reliable indicator of the labor situation, was 381.000 in the period ended Oct.17. That was down from 393,250 a week earlier and the lowest since the average also stood at 381,000 in the four weeks ended Sept. 8,1990. Roach said the trend of the last four weeks suggests the October unemployment report, to be released Nov. 6, “may not be as ugly” as recent ones. Although the jobless raten has fallen from 7.8 percent in July, the number of jobs declined by 140,000 in August and September. AmuysU had said the falling rate, represented discouraged workers dropping out of the labor market, not an improved labor envi ronment. Still, analysts suggested caution in interpreting the report. Roach said the number of claims could have been held down in the latest week by the Columbus Day holiday, which reduced the number of days for fllinf applications to four. Schaja als noted that the numbers are being held down by claimants using a special emergency unemployment program not included in the overall total.pennystocks
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