NFIB

Unemployment Insurance Claims Rise, Though Signs of Stabilization Loom
08/15/2002

The Labor Department yesterday reported that new applications for unemployment insurance rose by a seasonally adjusted 6,000 to 388,000 for the week ending Aug. 10. However, other signs indicate that the job market may be stabilizing.

Overall, jobless claims have been decreasing the last couple months, and new claims have been below 400,000 the last nine weeks. 400,000 is the number at which the job market is considered officially weak.

In another report yesterday, the Federal Reserve said that production at the nation’s factories rose 0.2 percent in July. This, coupled with low interest rates and retail sales rising 1.2 percent last month, indicates that consumer activity may be picking up, which would in turn help vitalize the job market.