graphic
graphic  
graphic
News > Economy
graphic
U.S. jobless claims drop
graphic October 11, 2001: 9:17 a.m. ET

New unemployment benefit claims fall, coming in lower than expected.
graphic
graphic graphic
graphic
graphic
graphic       graphic
  • U.S. inventories fall in August - Oct. 10, 2001
  • Unemployment rate steady in September, but job cuts soar - Oct. 5, 2001
  • New jobless claims surge - Oct. 4, 2001
  • Federal Reserve cuts interest rates for 9th time in 2001 - Oct. 2, 2001
  • Recession could follow terror attacks, but it might not last long - Sep. 20, 2001
  •  
    graphic
    graphic
    graphic       graphic
  • Labor Department report
  •  
    graphic
    NEW YORK (CNNmoney) - New claims for unemployment benefits in the United States fell last week, the government said Thursday, to a far lower level than economists expected, as job cuts from last month's terrorist attacks may not yet be affecting the U.S. economy.

    In its report, the Labor Department said new claims for state jobless benefits fell to 468,000 in the week ended Oct. 6 from a revised 535,000 the prior week. Economists surveyed by Briefing.com expected jobless claims of 510,000.

    Still, the Labor Department said much of the decline was due in part to a seasonal adjustment, and the data was only beginning to reflect the full impact of the Sept. 11 terror attacks that destroyed the World Trade Center and damaged the Pentagon.

    "The initial wave of layoffs in those industries most directly affected by the terrorist attacks has passed. However, there is another wave rolling to shore," said Steven Wood, economist with FinancialOxygen. "This second wave will be from the subsequent economic dislocations caused by the Sept. 11 events and be much more diffused through the economy."

    The weekly jobless claims data typically are volatile. The four-week moving average, which smoothes out fluctuations in the weekly data, rose to 463,000 from a revised 455,000 the prior week.

    Continuing claims for workers who have received at least a week of benefits rose to 3.48 million for the week ended Sept. 29, the latest data available, from a revised 3.81 million the previous week.

    graphic
    graphic graphic graphic
      U.S. jobless claims drop
    graphic CNNfn's Kathleen Hays takes a closer look at U.S. jobless claims.

    Real  28K 80K
    Windows
    Media
    28K 80K
     
    graphic
    U.S. stock prices rose on encouraging corporate news, while Treasury bond prices fell.

    Click here for CNNmoney.com's economic calendar

    The number of claims has grown since the attacks, especially in the airline, travel and tourism industries, which announced thousands of job cuts, citing a steep dropoff in business.

    graphic  
    The rate of unemployment in the United States held at 4.9 percent in September, though the number of job cuts rose alarmingly. Most economists expect the unemployment rate to rise well above 5.0 percent in the coming months.

    "Even as the pace of layoffs has ebbed, no new hiring is taking place, so continuing claims will rise even further and surpass their peak in the last recession," Wood said. "Labor market deterioration is continuing with no end in sight."

    Most economists expect the impact of the attacks -- and subsequent job cuts -- on consumer confidence will push the already weak U.S. economy into recession. To keep consumers spending, the Federal Reserve has cut its target for short-term interest rates nine times this year, twice in the month after the attacks. graphic

      RELATED STORIES

    U.S. inventories fall in August - Oct. 10, 2001

    Unemployment rate steady in September, but job cuts soar - Oct. 5, 2001

    New jobless claims surge - Oct. 4, 2001

    Federal Reserve cuts interest rates for 9th time in 2001 - Oct. 2, 2001

    Recession could follow terror attacks, but it might not last long - Sep. 20, 2001

      RELATED LINKS

    Labor Department report





    graphic graphic

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

    Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

    graphic