Gov't: Jobless Claims Fall to 502K, a Low

Obama Calls "A Hopeful Sign" New Seasonally Adjusted Number Showing Job Market's Slow Healing

(CBS/AP)  Updated at 10:05 a.m. Eastern time

New claims for unemployment insurance fell more than expected last week, evidence the job market is slowly healing as the economy recovers.

Still, many analysts worry the nation could be in for a "jobless recovery" as the unemployment rate rises despite some overall economic growth.

The Labor Department said Thursday that first-time claims for jobless benefits dropped to a seasonally adjusted 502,000 from an upwardly revised 514,000 the previous week. That's the fewest claims since the week ending Jan. 3, and below economists' estimates.

President Obama spoke with reporters Thursday about the Labor Department's report, saying that "the economy's now growing again for the first time in more than a year, and faster at any time in the past two years."

"Even though we've slowed the loss of jobs - and today's report on the continued decline in unemployment claims is a hopeful sign - the economic growth that we've seen has not yet led to the job growth that we desperately need," Mr. Obama said.

The president said that "hiring often takes time to catch up to economic growth" and noted that businesses of all sizes are demanding more from their workers.

"These companies have not yet been willing to take the steps necessary to hire again," Mr. Obama said. "Meanwhile, millions of Americans, our friends, our neighbors, our family members, are desperately searching for jobs. This is one of the great challenges that remains in our economy, a challenge that my administration is absolutely determined to meet."

The president announced that the White House will host a forum on jobs and economic growth in December.

The four-week average, which smooths fluctuations, dropped to 519,750, the lowest in almost a year. It has fallen by more than 20 percent since its peak in the spring.

Economists closely watch initial claims as a gauge of the pace of layoffs. But claims also can provide a signal about the willingness of companies to hire, because laid-off workers able to find jobs are less likely to request benefits.

Many analysts estimate that claims must fall to roughly 450,000 to signal that the economy is adding jobs.

The number of people continuing to claim benefits dropped by 139,000 to 5.6 million, also below analysts' estimates. The figures on continuing claims lag initial claims by a week.

But millions of unemployed Americans have used up the regular 26 weeks of benefits typically provided by states and are receiving extended benefits for up to 73 additional weeks, paid for by the federal government. Congress added 14 to 20 weeks to the extended program last week, the fourth extension since the recession began and the longest total extension on record.

About 4.1 million people were receiving extended benefits in the week ended Oct. 24, little changed from the previous week.

The unemployment rate jumped to 10.2 percent in October, the Labor Department said last week, as employers cut a net total of 190,000 jobs. That's the highest jobless rate in 26 years.

But the economy grew at a 3.5 percent annual rate in the July-September quarter after a record four straight quarterly drops. The disparity between the unemployment rate and economic growth figure has raised fears among many economists that the nation's economy could be in for a "jobless recovery."

More job cuts were announced this week. Adobe Systems Inc., the maker of Photoshop, Flash and Acrobat software products, said it will cut about 680 jobs, or 9 percent of its employees. And internet company AOL LLC, which will soon be spun off from parent Time Warner Inc., laid off about 100 full-time employees, reducing its work force to 6,900.

Among the states, Wisconsin had the highest number of claims, with 1,501, which it attributed to more layoffs in the construction, public administration and manufacturing industries. Illinois, Michigan, Puerto Rico and Texas had the next largest increases. The state data lag initial claims by one week.

California had the biggest drop in claims, with 6,752, which it attributed to fewer layoffs in the construction and service industries. Florida, Georgia, New York and North Carolina had the next largest decreases.

[Stevenapoli7]

Don't sugar coat the news. Another half million out of work. The economy is still broke bro.

[PaGuy1960]

last month it was more than expected this month less than expected. 2 months ago more than expected. What the hell? Are you kidding me? A half million more people out of work evey month and this is a good thing? This is pathetic..

[skepticalJM]

You no what really gets me is they just had a headline saying unemployment had soared to over 10%; NOW they say its down!

Make up your mind CBS???

Or maybe nobody knows whats going on in this screwed up society!

[bubbadubba]

About this story - BALONEY.

[vietnamwar]

what ? thousands just run out the Unemploy benefit???

[Lawyers-Guns-n-Money-01]

by 2012EOD November 12, 2009 10:31 AM EST
It's been a year now, how long can you keep blaming Bush?
==============================================================

If Reagan was any indication...THROUGHOUT HIS WHOLE TERM IN OFFICE!!!

[briannorwood]

GDP is now increasing at a healthy 3.5%. The market is up 40%. The job market is improving, though as expected lagging the overall recovery.

The question is, when are you going to start CREDITING Obama!

[chevyhotrod]

brain,
10.2% unemployment and rising
1.4 trillion dollar deficits, 1 trillion for the next ten years (CBO estimate)

Don't worry, the American people are starting to credit Obama more and more every day.

3.5% was created by cash for clunkers and free givaways, it can't last forever. You can only print so much money.

I tell you what, let's have a summit, because I really don't know what to do???? LOL, but it's really not funny at all.

[sly_64]

Meaningless statistic, since most people out of work are not collecting unemployment and do not report that they are out of work. Part time jobs are not full time jobs.

[stryker54]

just means some people exhausted their benifits and fell off the rolls.

[revlin1]

MORE LIES...The Census Bureau is SHORING UP numbers with temporary jobs in every region and opening up "fluff" offices in smaller cities within those regions for first time ever in dicennial census...those jobs are filled by ACORN types in many of these cities....THESE ARE THE SIGNS OF WHAT? TEMPORARY jobs and LOTS OF HANDS IN THE PIE of the Counting of Americans...NO, the jobs needed by the head of households (permanent with benefits to feed families) are MORE SCARCE than ever before and with the massive nutty healthcare reform on the horizon...more small companies have put on HIRING FREEZES AND FROZEN WAGE INCREASES OR BONUSES...Why, we heard that even the hotels in Hawaii aren't giving out their usual T-giving and holiday turkeys to employees...that is HEALING? What healing?

[curse914]

by revlin1 November 12, 2009 12:09 PM EST
MORE LIES...The Census Bureau is SHORING UP numbers with temporary jobs in every region and opening up

------------

by stillunbanable November 12, 2009 12:49 PM EST
Right! How do you say the economy is recovering when every month a half million more people are losing their jobs?

[][][][][][][]

I have a question for both of you, what ushered in the 1960 single wage earner? Answer: 30 years of the New Deal. Why did that wage earner disappear? Answer: 30 years of Financial Sector deregulation and "Free Trade" that amounted to free license for Corporations to move industry to nations with zero product safety and labor laws.

So, in short, we have allowed the GOP of the late 1800's to return with their ideology of unregulated capitalism fuel by naked over a barrel cheap labor.

[bobbyduck1]

Finally we are turnng the tide of despair left from the 8 year Bush / GOP debacle. Maybe by the time we re-elect President Obama, we will have erased all of the tragic evidence of the worst administration in history so we can recapture and build on the many successes of the Clinton administration.

Like a balanced budget and the 700 Billion surplus that Bush squandered before 9/11 even happened.

YES WE CAN!

[mav547166]

You forgot about the 8 year gutting of the military under Clinton that we are still trying to rebuild with the peace dividend he squandered. By the way Clinton also increased the National debt by 20%, but dont take my word for it go to the official treasury page and use their numbers.

[PaGuy1960]

Turning? Now that's funny. You actually believe these numbers are an improvement? WOW...