Initial Jobless Claims Remain Stubbornly High
This morning, the Department of Labor announced that weekly initial jobless claims rose 12,000, to 472,000. Last week’s claims were revised upward, from 456,000 to 460,000. The claims were higher than economists’ estimates of around 456,000. Bloomberg notes:
Claims around 450,000 are consistent with private companies adding about 100,000 jobs a month, JPMorgan Chase & Co. chief economist Bruce Kasman said in a note to clients before today’s report. That is fewer than the 116,000 a month average growth in the five years to December 2007, when the recession began.
Initial claims would have to average 425,000 to 430,000 for private payrolls to rise by the 175,000 a month that JPMorgan economists are forecasting for the second half of the year, Kasman said.
Indeed, the worrying stall out in the jobs market continues apace. The number of initial jobless benefits claimants was the highest since April and second highest since February.