The hope that the weekly jobless claims picture was getting better after last week’s surprise drop is being squashed. The Labor Department reported that weekly jobless claims rose back up into the danger zone this past week with a gain of 34,000 to 386,000. Bloomberg had estimates of 365,000 and the highest economist projection was 375,000. Today’s news represents the largest one-week gain in over a year, which just proves that the prior week’s reading was an aberration.
The prior week’s report also was revised higher by 2,000 to 352,000. The four-week average fell by 1,500 to 375,500. Another measurement of the continuing claims, the army of unemployed taking benefits for more than one-week, rose by 1,000 to 3.314 million.
Last week brought some hope that the layoffs were abating, but we suspected that the Fourth of July falling on a Wednesday played a huge role in the report. It is only that much more evident now. Back to more pain …
Layoffs are going to continue, and there seems little reason to see the unemployment rate improving from 8.2%.
JON C. OGG
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
