The number of new claims for jobless benefits for the week ending March 27 fell by 6,000 to 439,000. The overall trend for the past two months has been a gradual slowing in the rate of job losses, but the total number of people receiving unemployment benefits has remained steady. Worse still, the number of people receiving extended benefits after their normal unemployment benefits run out, continues to increase.
The fact that the total number of unemployed continues to grow – albeit at a slower pace than earlier in the year – provides further evidence to the vulnerability of recovery later in the year.
“Firms that have needed workers but refused to hire will start doing that,†Joel Naroff, president of Naroff Economic Advisors Inc. in Holland, Pennsylvania, said before the report. “But once they add those workers, they may not be in any mood to hire any more. That would lead to sluggish gains reappearing later in 2010.â€Â
Source: Bloomberg
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