note - anything above 400,000 is historically seen as recessionary, but as this statistic has stopped counting many people without insurance over the last 5 years, yet again the reality is much worse than the number suggests
U.S. Initial Jobless Claims Rise 15,000 to 444,000 (Update1)
By Bob Willis and Shobhana Chandra
Sept. 4 (Bloomberg)
-- Unemployment rolls in the U.S. rose to the highest level in almost five years, and last week's initial claims for jobless benefits exceeded forecasts, as employers cut staff in the face of a slowing economy.
The number of Americans filing first-time claims for unemployment benefits increased by 15,000 to 444,000 in the week ended Aug. 30, the Labor Department said today in Washington. A private report indicated U.S. companies cut 33,000 jobs in August.
Companies are reducing their payrolls and slowing the pace of hiring as a housing recession and a crisis in credit markets restrains consumer spending and slows the broader economy. Economists surveyed by Bloomberg News forecast the government tomorrow will report employers eliminated jobs in August for an eighth consecutive month.
``The labor market will continue to worsen,'' Dana Saporta, an economist at Dresdner Kleinwort in New York, said before the report. ``I look at claims and see much higher readings than just a few months ago, and I see that as consistent with the rising unemployment rate.''
The number of people staying on jobless rolls rose to 3.435 million, the highest since November 2003, in the prior week.
ADP Employer Services said the 33,000 decline in private payrolls followed a revised gain of 1,000 for the prior month that was lower than previously estimated.