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Last Update: 12-Jan-12 10:38 ET
Initial Claims Rise Again, Near 400,000
The initial claims level increased from 375,000 for the week ending December 31 to 399,000 for the week ending January 7. The Briefing.com consensus expected the initial claims level to remain at 375,000.
After falling to its lowest level since 2008, initial claims have steadily increased over the past few weeks. It seems that businesses expected strong holiday sales growth and increased their labor force to meet the anticipated demand. As sales disappointed, which seems evident given the December retail sales report, firms may have cut back on staffing in January and reduced their labor needs.
If this is true, then it may take a few more weeks of relatively large layoff levels until businesses come to terms with their labor needs.
Yet, it is also possible that the increase in claims may be only a temporary spike as businesses immediately brought staffing in-line with current economic conditions.
The continuing claims level increased from 3.609 mln for the week ending December 24 to 3.628 mln for the week ending December 31. The consensus pegged the continuing claims level at 3.600 mln.
After falling to its lowest level since 2008, initial claims have steadily increased over the past few weeks. It seems that businesses expected strong holiday sales growth and increased their labor force to meet the anticipated demand. As sales disappointed, which seems evident given the December retail sales report, firms may have cut back on staffing in January and reduced their labor needs.
If this is true, then it may take a few more weeks of relatively large layoff levels until businesses come to terms with their labor needs.
Yet, it is also possible that the increase in claims may be only a temporary spike as businesses immediately brought staffing in-line with current economic conditions.
The continuing claims level increased from 3.609 mln for the week ending December 24 to 3.628 mln for the week ending December 31. The consensus pegged the continuing claims level at 3.600 mln.
