In another report released last week, the Labor Department reported initial claims for jobless benefits fell by nearly 25,000 to a seasonally adjusted 455,000, nearly equalling analysts' projections. Thr drop follows two consecutive weeks of rising uneployment, which analysts attribute to Easter holiday job search difficulty. Many analyst, however, are concerned that jobless claims haven't fallen faster, indicative of new hiring. Initial claims are around the same as they were at the start of 2010, having recovered from a sharp rise brought on by East Coast snowstorms.
The four week average of jobless claims, used to smooth out seasonal volatility, increased slightly to around 460,000. Claims have been steadily falling over the course of the last year. The peak for initial unemployment claims came in March of 2009, just over 650,000.
Meanwhile, stocks fell yesterday in mid-day trading. The Dow falling nearly 100 points, with other indexes falling as well. The Labor Department also reported that wholesale prices climbed nearly one percent, more than expected, as food prices jumped more than any time in the last 26 years.
Employers in March created 162,000 new jobs, the most in the last three years, although the economic recovery hasn't been strong enough to bring down the unemployment rate, which has been stagnant at 9.7 percent for three months, higher than any time since the 1980s. The latest data available shows that 5.5 million people were receiving extended unemployment benefits the week ending April 3rd, down from 6 million the week before.
