Thursday, the Department of Labor released unemployment benefit claims for last week which showed the highest jump of the year; for week ending August 14, initial jobless claims jumped 12,000 to 500,000; this is the most reported in one week since November 14, 2009.
The increase in unemployment claims exceeded all estimates of economists, according to Bloomberg News; 478,000 claims was estimated.
The number of people who extended unemployment benefits increased as well.
Last week, the Federal Reserve reported that the economy recovery would be “more modest” than originally anticipated, and would be mostly due to a high jobless rate that restrains incomes.
Bloomberg News reported: “We’re seeing a renewed pickup in layoffs,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut. “If firms aren’t hiring it’s probably because they’re not producing. Demand will slow in the third quarter.”
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Source: Bloomberg News
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