U.S. jobless rate historically high despite sharp pickup in hiring

PanARMENIAN.Net - The number of people who applied for U.S. unemployment benefits in the first week of October remained below 300,000 for the fourth straight week, the first time that’s happened since early 2006, MarketWatch reports.

Initial jobless claims edged down by 1,000 to a seasonally adjusted 287,000 in the week ended Oct. 4, the Labor Department said Thursday, Oct 9. Jobless claims are now 21% lower compared to one year ago.

The diminished level of claims reflects a labor market that’s experiencing historically low rate of layoffs and probably will continue to do so for the near future. Companies fired so many workers during the Great Recession – and have been very picky hirers since then – that successful firms are letting very few people go these days.

Still, nearly 19 million Americans say they want to work but cannot find a good full-time job, a number that also remains historically high despite a sharp pickup in hiring over the past few years.

The Federal Reserve has resisted raising interest rates for the first time in years because most central bankers believe the unemployment rate overstates the health of the labor market. The nation’s main unemployment gauge fell to 5.9% in September to bring the rate below 6% for the first time since 2008.

The average of new claims over the past month, meanwhile, dropped by 7,250 to 287,750 and hit the lowest level since February 2006. The four-week average reduces seasonal volatility in the weekly data and is seen as a more accurate barometer of labor-market trends.

Initial claims from two weeks ago were revised to 288,000 from an original reading of 287,000.

Also, the government said continuing claims decreased by 21,000 to a seasonally adjusted 2.38 million in the week ended Sept. 27. Continuing claims reflect the number of people already receiving benefits and are reported with a one-week lag.