Unemployment Claims Dip to 423,000

blr-editor | September 22, 2011 | Comments (0)

A small dip in the number of first-time filers is welcome, but makes little dent in the overall picture

The number of first-time filers for unemployment benefits fell in the week ending September 17 to 423,000, a decrease of 9,000 from the previous week’s spike of 432,000.

While welcome news, this new number does not affect significantly improve the continuing malaise in the job market as President Obama spars with the Republican-led House about his jobs bill.

The 4-week moving average also rose to 421,000, an increase of 500 from the previous week’s revised average of 420,500.

The advance seasonally adjusted insured unemployment rate was 3.0% for the week ending September 10, unchanged from the prior week’s revised rate.

Continuing claims – which include people filing for the second week of benefits or more during the week ending September 10 was 3,727,000, a decrease of 28,000 from the preceding week’s revised level of 3,755,000.

The 4-week moving average was 3,742,500, an increase of 6,500 from the preceding week’s revised average of 3,748,500.

Yesterday, the Fed said a complete economic recovery was still years away, adding that the U.S. economy has “significant downside risks to the economic outlook, including strains in global financial markets.”

It also said it would buy long-term Treasury bonds and sell short-term bonds to help stimulate lending and growth. Since the statement, global markets have fallen sharply based on the Fed’s grim prognosis.