Jobless benefit rolls drop sharply to nearly 6.7M

[ProSense]

Jobless benefit rolls drop sharply to nearly 6.7M

By CHRISTOPHER S. RUGABER, AP Economics Writer

WASHINGTON – The total number of people on the unemployment insurance rolls dropped for the first time since early January, the government said Thursday, while new claims for benefits rose slightly.

The report shows that job losses are easing after companies made deep cuts earlier this year. But nearly half of recipients at the end of last month had exhausted the 26 weeks of benefits provided under the regular state program without finding work, according to Labor Department data. That's a record and compared with about 36 percent in December 2007, when the recession began.

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The department said the total unemployment insurance rolls fell by 148,000 to 6.69 million in the week ending June 6, the largest drop in more than seven years.

The drop also breaks a string of 21 straight increases in continuing claims, the last 19 of which were records. A dip in continuing claims several weeks ago was later revised higher. Initial claims rose by 3,000 to a seasonally adjusted 608,000 in the week ending June 13, above analysts' expectations. The four-week average, which smooths fluctuations, fell by 7,000 to 615,750. Continuing claims data lags initial claims by one week.

The four-week average is at its lowest level since mid-February, further evidence that the pace of job cuts is slowing.

In another encouraging sign, the Conference Board on Tuesday said its index of leading economic indicators rose for the second consecutive month in May after seven straight declines. The index rose 1.2 percent last month and by the same in amount in the six-month period ending in May, the first time that measure has grown since April 2007.

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[marmar]

1. The buried lede:

"But nearly half of recipients at the end of last month had exhausted the 26 weeks of benefits provided under the regular state program without finding work, according to Labor Department data. That's a record and compared with about 36 percent in December 2007, when the recession began."

[ProSense]

2. It's a work in progress

Slowly, but surely.

[Raineyb]

4. I fail to see how people dropping off the unemployment rolls without jobs is a sign of things

moving in the right direction.

[ProSense]

5. Maybe you should read both articles and make your own determination.

I didn't suggest that there was a correlation between the number of people who exhausted their benefits during the previous month and the decrease in the unemployment rolls this week because it's apples and oranges in terms of the indicators mentioned in the article. People always drop from the rolls, and new claims are always added, but that was not the main focus of the piece.

[doc03]

3. Republican spin on this: This proves the Stimulus Plan

wasn't needed, only $44 million of it has been spent. The private sector is making a recovery in spite of the government. I heard that yesterday I believe it was from Larry Kudlow on CNBC. Tonight they proclaimed the Obama Health Plan DOA on CNBC.