Briefing.com: Initial Claims

Updated: 18-Mar-10 09:09 ET

Initial Claims for the Week Ended Mar 13

Updated: 18-Mar-10 09:09 ET

Highlights

The initial claims figure posted a modest decline, falling from 462,000 for the week ending March 6 to 457,000 for the week ending March 13.
The consensus estimate called for a fall to 455,000.
The continuing claims figure rose for the second consecutive week as the number of workers receiving unemployment insurance increased from 4.567 mln to 4.579 mln for the week ending March 6.
The consensus estimate called for a decline to 4.522 mln.

Key Factors

The limited movement in claims over the past three weeks suggests that the labor market has hit a new equilibrium plateau.
It could take a few more weeks before it breaks out again in a steep downward trajectory.
Job creation remains stagnant. For the week ending Feb. 27, the nonseasonally adjusted continuing claims figure declined by 57,819. At the same time, workers receiving extended benefits increased by 360,123. The data suggest that just about all of the people that stopped receiving unemployment insurance were simply transferred to extended benefits instead of finding new jobs.

Big Picture

New claims have dropped below 500,000, but they are still well above the typical levels found during the last recession. As major companies finish their labor restructuring, many of the newly unemployed are coming from smaller businesses. This tends to cause more hardship on Main Street as many of these workers are unprepared for their job loss.