Key Jobless Figure Hits 6-Year High

Nearly 500,000 New Applicants For Unemployment Benefits; Spike Worse Than Analysts Feared

(AP)  The number of newly laid off people signing up for jobless benefits last week climbed to its highest point in more than six years as companies cut back given the faltering economy.

The Labor Department reported Thursday that new applications filed for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2. The increase left claims at their highest level since late March 2002.

A program to locate people eligible for jobless benefits played a role in the increase, a Labor Department analyst said. However, the analyst couldn't say how much of a role.

The latest snapshot of layoff filings was worse than analysts expected. They were forecasting new claims to drop to around 430,000.

The data disappointed Wall Street. Stocks appeared headed for a lower opening.

The new layoff filings were distorted by the outreach program to notify people that they could qualify for additional benefits under a new law.

When people went to state claims offices to apply for these extended benefits, state officials discovered that some were eligible for - but haven't filed for - their initial unemployment benefits, the Labor Department analyst said. That accounted for some of last week's increase, he said.

Meanwhile, the four-week moving average of claims, which smoothes out weekly fluctuations, rose to 419,500 last week, the highest since mid-July 2003.

The number of people continuing to collect unemployment benefits went up by 31,000 to 3.3 million for the week ending July 26, the most recent period for which that information is available. That was the highest since early December 2003.

Among the companies announcing job cuts in late July or early August were: General Motors Corp., Weyerhaeuser Co., and Starbucks Corp. Bennigan's restaurants owned by privately held Metromedia Restaurant Group, are closing, driving more people to unemployment lines.

Squeezed by high energy prices and fallout from housing and credit troubles, employers clamped down even more on hiring in July. The nation's unemployment rate jumped to a five-year high of 5.7 percent, the government reported last week. Employers cut jobs every month so far this year, driving up losses to 463,000.

Economists expect another half million jobs to be eliminated this year alone. The jobless rate could hit 6.5 percent by the middle of next year.

The country is getting pounded by many negative forces, the Federal Reserve said Tuesday.

"Labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction and elevated energy prices are likely to weigh on economic growth over the next few quarters," the Fed said.

Against that backdrop, the Fed decided to leave a key interest rate steady Tuesday. The Fed can't afford to cut rates anymore because it could aggravate inflation. On the other hand, boosting rates too soon would deal a blow to the economy and the ailing housing market.

[wardoglrs]

Replace the two party system with nothing. Time to end them both there nothing but ******

[wardoglrs]

Replace the two party system with nothing. Time to end them both there nothing but ******

[spadeisspade]

Timetrips-

Dem watcher is right; do your homework. The Dem run congress was repeatedly warned about the dangers of the subprime loan market and did nothing about it. Maybe Republicans help line corporate pockets, but you can''t say they don''t do anything!

[daysrnumbrd]

ubrew, timetrips,

You just can''t reply with reason and logic to these autistic children (DemWatcher and ritewingman). The best reply you can give is to congratulate them for typing a complete sentence (or two) and then instruct them to go make themselves a sandwich.

[ubrew12]

ritewingman said: "Demwatcher is correct in that the congress has not allowed the U.S. to increase it''s domestic oil output and in doing so as crippled this economy. "

Did you''all just wake up yesterday and find out we''re running out of oil? An exceptionally compliant Republican Congress had 6 YEARS to bend over and take it in the *** for our oil companies and our oil president, yielding our offshore oil to their rape... and they did WHAT??? Other than doubling the national debt, they did little about it. One would almost think they LIKED high oil prices!!

Drill all you want: the world has a 20-30 year supply of oil and then you''re going to be wishing you''d conserved more and developed alternatives more. Typical conservatives: 3 month horizon!

[timetrips1]

And it is all thanks to the Do-Nothing Democrat Congress. Consumer confidence has tanked, gasoline prices have doubled, and 4 percent of Americans are in danger of loosing their homes, all which has occurred since the Dems took over.

Posted by DemWatcher at 09:12 PM : Aug 07, 2008

And another idiot speaks! Republicans have run congress for years and nothing happened except to line the pockets of greedy corporatations.

[ubrew12]

Three-fourths (75%) of the economic growth during the Bush administration has gone to the wealthiest 1% of Americans, according to the Economist Magazine (which is hardly a liberal rag).

While the poorest 99% of Americans saw income increases of 1% a year (between 2002 and 2006), the wealthiest 1% of Americans saw income increases of 11% a year over the same time period.

Time to try something different.

[skyk-2009]

NAFTA got nothing to do with Oursourcing and Insourcing (H1B Visas) of American Profesional jobs to India and China. You can completely kill NAFTA and these jobs will still be lost.

Posted by lovegetpeace at 08:10 PM : Aug 07, 2008

ALL "Free Trade" Agreements need to be thrown in the Trash! We need to put people in charge of negotiating them who have the interest of ALL American''s at heart and not just Corporations.

[skyk-2009]

And it is all thanks to the Do-Nothing Democrat Congress. Consumer confidence has tanked, gasoline prices have doubled, and 4 percent of Americans are in danger of loosing their homes, all which has occurred since the Dems took over.

Posted by DemWatcher at 09:12 PM : Aug 07, 2008

AMAZING!! Absolutely AMAZING! Someone who lives in this nation and knows so little about how it works!! It''s hard to imagine this poor person actually got out of Grade School. Honestly, 6th graders know more about the functions of Government and WHO sets the policy for the Economy than this person. It''s saddening to know that there really are people out there who have no more knowledge than this.. VERY SADDENING! Sir PLEASE, for yourself and your country, PLEASE take some night classes... educate yourself on the CONSTITUTION and the different branches of our GOVERNMENT!! IT is the PRESIDENT who set''s the ECONOMIC POLICY of this nation. That POLICY has been in the tank for 7 years going on 8 now. Good Grief!!

[deacon20081]

A McSame Troll Speaks................

And it is all thanks to the Do-Nothing Democrat Congress. Consumer confidence has tanked, gasoline prices have doubled, and 4 percent of Americans are in danger of loosing their homes, all which has occurred since the Dems took over.


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Posted by DemWatcher

[demwatcher]

And it is all thanks to the Do-Nothing Democrat Congress. Consumer confidence has tanked, gasoline prices have doubled, and 4 percent of Americans are in danger of loosing their homes, all which has occurred since the Dems took over.

[mitch5511]

NAFTA got nothing to do with Oursourcing and Insourcing (H1B Visas) of American Profesional jobs to India and China. You can completely kill NAFTA and these jobs will still be lost.
~~~~~~~~~~~~~~``
Really? Let''s give it a try and see what happens then.

[lovegetpeace]

Posted by libsluv2spit at 04:44 PM : Aug 07, 2008

NAFTA got nothing to do with Oursourcing and Insourcing (H1B Visas) of American Profesional jobs to India and China. You can completely kill NAFTA and these jobs will still be lost.

[lovegetpeace]

Posted by libsluv2spit at 04:42 PM : Aug 07, 2008

What jobs? Are you talking about the Outsourcing and Insourcing (H1B Visa) of High-Pay, High-Tech Professional jobs by American Corporations?

[lovegetpeace]

Posted by libsluv2spit at 04:44 PM : Aug 07, 2008

Capitalism works best under Communism where workers have almost no rights and under the firm control (regulation) of a Central Government.

See China, Russia and Vietnam as Awesome Examples.

[lovegetpeace]

Bravo to the Massive Bush''s Tax Cuts of 2001 and 2003. Shall we have another one? China is ready with the cash to loan us.

[n_cognito22]

-after all those imposed business burdens the liberals and the democrats had imposed on american companies..they rather give it to "7 year old" in china and india..
Posted by libsluv2spit at 04:44 PM : Aug 07, 2008

Nahhh, its all those big tax breaks the republicons give to the giant corporations to locate operations overseas to countries that pay less than slave wages.
Tell everybody here how you can live on $2.00 a day if you even have a job to begin with. Come January 2009 the only spitting you''ll be doing is when you are shining the shoes of President Barack Hussein Obama.

[libsluv2spit]

The 7-yr olds in China and India are fully employed. What else matters? Thanks McCain AND Obama for supporting NAFTA. Stick a fork into the United States, it''''s finished.


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Posted by SistaTee at 01:58 PM : Aug 07, 2008
+ report abuse

******************

after all those imposed business burdens the liberals and the democrats had imposed on american companies..they rather give it to "7 year old" in china and india..

[libsluv2spit]

The Republican recession grinds on!!!!! Why don''''t they just abolish the GOP???? They have been such horrible stewards of the economy and our government, they don''''t deserve to even exist anymore in my view.


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Posted by wpiv926 at 04:06 PM : Aug 07, 2008
+ report abuse

**************

a democrat''s answer to this recession is more taxes on businesses..do you know the reprecussions of that??

let me know when you cannot find a decent job stateside..

[wpiv926]

The Republican recession grinds on!!!!! Why don''t they just abolish the GOP???? They have been such horrible stewards of the economy and our government, they don''t deserve to even exist anymore in my view.