Jobless Claims Remain Near Lows Following the Recession

Companies face many problems but a very big one today is finding sufficient workers that can fill job openings. That in turn has kept layoffs at extremely low numbers.

The number of people applying for benefits of unemployment the final week of August remained near lows following the recession, which points another strong monthly report on employment as the summer comes to an end.

First time jobless claims for the period between August 20 and August 26 increased 1,000 to just over 236,000, said the government on Thursday.

New claims are those people who are applying for their unemployment benefits after having lost their jobs.

The average of the new claims over the last month, which indicates a far more stable overall picture of trends in layoffs, was down by over 1,250 to a total of 236,750. That is the second lowest overall level since mid-2009 when the U.S. economy started to grow again.

New applications for unemployment have been less than 300,000 for the last 130 weeks, which extends the longest streak dating back to the early 1970s.

Tomorrow the government will release its monthly report for new jobs during August and experts estimate over 175,000 jobs were added. The rate of unemployment is 4.3% which is a low of 16 years and analysts expect that to remain the same.

The U.S. created close to 17 million new jobs dating back to 2010, which has powered the economic expansion in the U.S. that is now entering its ninth year. During the second quarter, the U.S. economy grew at an annualized rate of 3%, its fastest surge in over two years.

At the same time, the number of people that already are collecting check for unemployment, referred to as continuing claims, dropped 12,000 during mid-August to 1.93 million.

Upon the news of the unemployment report, futures for the financial markets in the U.S. edged higher prior to opening Thursday morning.

In Germany, unemployed increased slightly during August, but its labor market remained steady showed the last report on unemployment prior to Germany’s September election.

The government’s labor agency said on Thursday that unemployment moved up ending August at 5.7% from July’s 5.6%.

In Germany, over 2.55 million people do not have jobs, which were 27,000 more than during July, but close to 140,000 less that the same month last year.

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