Mike: The Thursday Jobless Claims report shows a worse showing than expected with 627,000 jobless claims compared to a 600,000 estimate. The four-week moving average also increased, although by only 500, but it shows that jobless claims are still at recessionary levels and not improving as quickly as most “experts” had envisioned.The 4-week moving average was 617,250, an increase of 500 from the previous week’s revised average of 616,750.
WASHINGTON (AP) — The number of people filing new jobless claims jumped unexpectedly last week, and the total unemployment benefit rolls rose to more than 6.7 million.
The Labor Department data released Thursday show jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.
The department said initial claims for jobless benefits rose last week by 15,000 to a seasonally adjusted 627,000. Economists expected a drop to 600,000, according to Thomson Reuters.
The number of people continuing to receive unemployment insurance rose by 29,000 to 6.74 million, slightly above analysts’ estimates of 6.7 million.
Some of this week’s increase in jobless claims was attributed to teachers and bus drivers filing for unemployment after the school year ended. Yet when I read the DOL announcement, it shows that the states with the largest increases in jobless claims had higher layoffs in construction and manufacturing. Maybe the higher layoffs in transportation have something to do with school bus drivers, but I don’t see teachers listed as any reason for the increase, at least in the following states:
MO +2,874 Layoffs in the construction, transportation, warehousing, and manufacturing industries.
PA +3,191 Layoffs in the transportation equipment, transportation, and service industries.
FL +8,383 Layoffs in the construction, trade, service, and manufacturing industries, and agriculture.
Mike: There’s another unemployment figure that I need to make sure is accurate, but from what I can determine the 6.74 million on continuing claims doesn’t include the following group of unemployed collecting EUC benefits, which takes over once the initial round of benefits are exhausted. So 6.74 million continuing claims are those collecting for the initial 13-26 weeks of unemployment. Then the states take over with EUC benefits for the last batch of unemployment checks. So totaling continuing claims of 6.74 million plus 2.429 million gives us 9.169 million on continuing claims, or an increase of about 27%. I sent the Department of Labor a note to get clarification, but it’s possible that continuing claims are much higher than advertised:
States reported 2,429,772 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending June 6, an increase of 70,235 from the prior week. EUC weekly claims include both first and second tier activity.
Microsoft/Google/IBM and other Rumors/News
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– Billionaire Paul Allen’s private investment firm, Vulcan, has laid off more workers. The Seattle company — which operates the Microsoft Corp. co-founder’s real estate, financial and personal holdings —cut 17 employees today in its technical department, citing the tough economy.
8:30 AM ET
WASHINGTON (AP) — The economy tumbled at a 5.5 percent pace in the first quarter, but appears to be doing better now, even though heavy layoffs persist.
The revised reading on gross domestic product, released Thursday by the Commerce Department, showed the economy from January through March didn’t fall as deeply as the 5.7 percent annualized decline reported a month ago. Economists expected the government would stick with its previous estimate.
– YONKERS – Fifteen special-education teachers have lost their jobs in the city school district.
– Last week, 48 positions were eliminated across the department, saving $4.3 million. Only nine people were laid off, with the rest of the positions already vacant.
– While he did not give a specific number, Hulsey said the cuts would “require hundreds of layoffs” in the coming weeks.
– Forty-four teaching positions and 12 other staff jobs were cut Wednesday in a second round of Yuba City Unified School District layoffs that officials say are spurred by new proposed state funding cuts to schools.
– Rogue Community College employees have agreed to forgo all raises and take up to six unpaid furlough days in 2009-10.
– STOUGHTON – Faced with reduced state aid, Stoughton schools are laying off 17 support staff, four high school teachers, one elementary teacher and two librarians next school year, for a total of 24 positions.
June 25 (Bloomberg) — Kimberly-Clark Corp. said it will cut its worldwide salaried workforce by about 1,600 positions by the end of the year.
– Under the new budget, 1,240 jobs at the university will be eliminated — about 5.5 percent of the total workforce.
The budget includes 220 fewer faculty members, 280 fewer administrative jobs and more than 700 other student and staff job reductions or “non-renewals.”
– The Ethan Allen manufacturing plant in Beecher Falls is laying off most of its work force.
The furniture manufacturer has about 330 workers left at the plant– 260 of them will be let go in 60 days.
– SHREVEPORT — General Motors Corp.’s assembly and stamping plants in Shreveport will close by June 2012, if not sooner.
GM announced Wednesday it will close the factory by that date depending on market conditions. The plant employs about 1,100 people — 950 hourly and 150 salary employees.
– The shutdown of the No. 4 machine means the loss of 130 jobs, 70 at the mill itself and 60 in forest operations.
– Even Firefly Energy Inc., the Peoria company that wants to revolutionize the world of lead-acid batteries, is not exempt from the economic downturn.
– Then Ericksen, 23, who lives in Tempe, said he got a stream of calls from former co-workers who were laid off Monday.
Michael Pouls, the former business partner with BBZ, said he, too, got the news of the layoffs. Pouls filed suit against BBZ last week, accusing the company of running a “Ponzi scheme.”
– The Communications, Energy and Paperworkers Union of Canada, representing more than 300 workers inside St. Marys Paper Corp., is bracing for additional layoffs at the Sault Ste. Marie specialty paper mill.
“The company has informed the union they will be scaling back current staffing levels in the very near future,” said Rene Lindquist, CEP national representative.
– The Boston Symphony Orchestra confirmed today that 10 employees are being laid off, from departments including development and public relations.
– Fargo-based Hospice of the Red River Valley laid off 11 employees Wednesday due to a declining economy.
– About 120 positions would have been eliminated had it not been for federal stimulus dollars worth about $7.9 million. Those dollars should temporarily save about 74 jobs, Hardee said.
-A manufacturing firm is to close a factory which has been in business for 58 years with the loss of almost 180 jobs, it has emerged.
ABB, which makes components for power supply, will shut down its long-standing Waterford facility by next April.
– VICKSBURG, Miss. — Fifty jobs will be lost in Vicksburg over the next several months as a subsidiary of Ergon, Inc., shuts down.
– POTTER TWP. — Nova Chemicals Corp. announced on Wednesday that it will discontinue one of three product lines at its Potter Township plant and eliminate 30 to 45 positions in coming months because of the auto industry’s continuing economic collapse.
– The Hendrickson International Trailer Suspension Systems plant here laid off more than 70 employees as the trucking industry continues to reflect the economy.
– Gardner Denver has informed the sate of Wisconsin that the eventual closing of its Sheboygan plant will result in the loss of 36 more jobs by Sept. 5 for a total of 58 layoffs so far.
– The Intelligencer has learned that Sears told employees Thursday that it will be outsourcing 230 jobs at the Belleville catalogue call centre to a separate Canadian company – which has a location on the South-Pacific island nation where labour costs are a fraction of those in Canada.
– The steel industry was hit by a fresh jobs blow with news that Corus is to axe more than 2,000 posts following a slump in demand.
Sources said plants including Rotherham and Scunthorpe will be hardest hit by the latest cutback by the steel giant, which has already axed thousands of jobs this year.
– – Engineering company Sulzer AG has announced it is cutting 1,400 jobs – or about 11 per cent of its global work force – despite enjoying profits of 323 million swiss francs last year.
– Legal & General is cutting 200 jobs across its risk business, bringing the total job cuts at the company so far this year to 1,210.
– ABB Transformers told workers this morning that the Tycor facility would be shut down from next March.
– CMS Cameron McKenna has completed its redundancy consultation, laying off 73 London staff earlier this month (8 June).
-Sources close to WAN said at the time the cuts would equate to up to 70 redundancies, including up to 15 editorial staff and that some long-time employees could receive a redundancy payment of up to $150,000.
– LONDON (SHARECAST) – Nanomaterials group Oxonica said its chief executive will step down and added that it has initiated a redundancy programme in the UK.
– Nortel has laid off senior staff in the UK who were responsible for the company’s unified communications partnership with Microsoft, according to sources.
– Shrinking economy? Not for one major cable TV company in Orange County. Cox Communications appears to be thriving. On Saturday, it will host a job fair in hopes of filling around 60 openings, said Lana Ong, a company spokesperson.
– RESEARCH TRIANGLE PARK, N.C. – We have all heard the old saying, “it’s not what you know, it’s who you know.” Well, there is a lot to be said about that.
But, probably more importantly, you should ask “who knows you?”
– As if job hunting wasn’t hard enough already, the Internet has added a few new twists to the process. Specifically, there are now more ways to shoot yourself in the foot. Beware of these digital faux pas:
Mike: Have a good evening……………………