US Jobless claims exceed expectations


JNN 22.07.10 The number of new jobless claims filed last week in the United States rose by 37,000, surprising forecasters who had predicted a much lower rise.

According to the Labor Department, initial claims for unemployment benefits in the week ending on July 17 rose by 37,000 to 464,000. This is while economists initially expected 448,000 new claims.

Reports from the US say that 34 states and territories reported an increase in jobless claims. New York was leading the rise of new jobless claims with more than 18,000 people making fresh filings due to job cuts in the transportation and public administration industries.

Almost 8.5 million Americans lost their jobs in 2008 and 2009, Bloomberg quoted Federal Reserve Chairman Ben S. Bernanke.

He also noted “unusual” uncertainty in the US economy and said the central bank would be ready to act if more stimuli were needed.

Bernanke who was speaking to the Congress on Wednesday warned that it will probably take a significant amount of time to restore the millions of jobs lost since the start of the recession.

After hitting a 26-year high of 10.1 percent in October 2009, the unemployment rate fell to 9.5 percent in June and millions remain without job, The Washington Post reported.

The Labor Department report comes a day after US Senate voted in favor of extending unemployment benefits to 2.5 million Americans who have been out of work for more than six months.

The bill was passed by a margin of 59-39 with most Republicans opposing the extension.

The opponents of the bill argued that it would add unnecessarily to the federal budget deficit while the supporters proposed using unspent stimulus money from last year’s economic recovery plan to pay for the extension

The bill still needs to be taken up by House lawmakers before it is signed by President Barack Obama to become law.

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