By Utta Von Nuremburg
WASHINGTON (MNI) – Wednesday’s release of initial jobless claims
data for the November 6 week by the Labor Department is expected to show
a modest decline in the number of claimants filing for unemployment
benefits.
Despite October’s payroll report, showing an increase of 151,000
payroll jobs and slightly more than that in the private sector, the
weekly jobless claims numbers have been volatile in recent weeks,
partly because of the Columbus Day holiday.
According to Sean Incremona, economist at 4CAST, Ltd., “We can
expect to see a pretty small decline relative to last week’s bounce.
Last week’s data was an unfriendly reminder that an improvement to the
downside is going to be gradual.”
Initial jobless claims are expected to fall to 450,000 for the week
ending November 6, according to a survey of economists by Market News
International. This would follow an unexpected rebound of 20,000 to
457,000 from the week prior.
The four-week moving average of initial claims – considered a
better gauge of employment trends than the volatile weekly number —
will register at 449,750, if expectations are met and there are no
revisions to the previous week’s data.
Of note, the 4-week moving average for continuing claims currently
stands at 4,340,000 — the lowest figure since December 2008.
Weakness in the labor market continues to threaten economic
recovery. The Federal Reserve last Wednesday expressed disappointment in
the economy’s performance, initiating a second round of asset purchases
in an effort to stimulate the sluggish pace of economic recovery.
The claims reports was moved earlier in the week by a day because
of the Thursday holiday.
–Utta Von Nuremburg is a reporter with Need to Know News in Washington
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$]
