Jobless Claims in U.S. Fall Over Past Month to 15-Year Low

[Stuart G]

Source: Bloomberg News

The average number of Americans filing for unemployment benefits over the past four weeks dropped to a 15-year low, a sign the labor market continues to strengthen.

The four-week average for jobless claims decreased to 266,250 in the period ended May 16 from 271,750, a Labor Department report showed Thursday in Washington. The figure corresponds to the week the government surveys employers to calculate the monthly payroll data. On a weekly basis, applications rose by 10,000 to 274,000.

Such a limited pace of dismissals indicates companies are anticipating a pickup in demand for their goods and services in the coming months. More job security that sparks bigger wage gains would help propel consumer confidence and make households feel more comfortable spending.

“It’s indicative of a labor market that’s showing no signs of reversal even if the pace of job growth is going to slow,” said Eric Green, head of U.S. economic research at TD Securities USA LLC in New York. Whether it’s 260,000 or 274,000, “the theme here is claims are very low.”


Read more: http://www.bloomberg.com/news/articles/2015-05-21/jobless-claims-in-u-s-fall-over-past-month-to-15-year-low

[Javaman]

1. 40 percent of unemployed have quit looking for jobs

http://www.democraticunderground.com/10141099242

http://www.cnbc.com/id/102694868

[Fournier]

3. Good post.

[mahatmakanejeeves]

2. The four-week moving average declined, but initial claims were up by 10,000.

ETA News Release: Unemployment Insurance Weekly Claims Report (05/21/2015)

Unemployment Insurance Weekly Claims Report (05/21/2015)

In the week ending May 16, the advance figure for seasonally adjusted initial claims was 274,000, an increase of 10,000 from the previous week's unrevised level of 264,000. The 4-week moving average was 266,250, a decrease of 5,500 from the previous week's unrevised average of 271,750. This is the lowest level for this average since April 15, 2000 when it was 266,250.

[onehandle]

4. Thousands have lost their homes, families, and lives due to the GOP ending emergency unemployment.

Boehner has gotten death threats over this. At least one man has been arrested.

Frankly I'm surprised nobody has gone further.

[OilemFirchen]

5. Barring any unforeseen financial meltdown...

we're tacking toward theoretical full employment sometime mid-2016.

That will leave any of the current Republican Presidential contenders - all of whom have been critical of the President's economic growth initiatives - unelectable. It would behoove all of the Democratic nominees to support continuing Obama's policies - which I anticipate, despite the mewling of the perpetually malcontent.

[Stuart G]

6. I sure hope you are correct.

If we get even close to full employment, that could sink the GOP for good. Also, the closer to full employment we get, then wages will have to go up, at least some. That would be good for all.

[OilemFirchen]

8. One would naturally anticipate wage growth under full employment.

These days, though, it's hard to speculate. Ultimately they'll have to bump wages, but I see them fighting tooth and nail until they're forced into it - rather than proactively working to retain employees.

Time will tell...

[IronLionZion]

9. What's the number used for full employment?

[OilemFirchen]

10. It depends on whose definition you choose.

I've always used 4.5% as an investment guide. Depending on the economist, though, full employment can range from 0% (sublime) to 13% (ridiculous).

According to Wikipedia:

The United States is, as a statutory matter, committed to full employment (defined as 3% unemployment for persons aged 20 and older, 4% for persons aged 16 and over); the government is empowered to effect this goal.

However:

... since the passage of this Act in 1978, the US has, as of 2012 never achieved this level of employment on the national level, though some states have neared it or met it, nor has such a reservoir of public employment been created.

Arguably, we've been at full employment a number of times during that period - as noted by wage growth.

[IronLionZion]

12. 4.5% seems doable

of course the GOP will use the lower target number, and claim the "real" unemployment number is much higher than what's reported.

[Gothmog]

7. This is great news

[BootinUp]

11. And with a Repuke just say no congress this is impressive. nt