EconomicCrisis.US

Applications for unemployment benefits in the U.S. unexpectedly increased last week to the highest level since November, showing companies are stepping up the pace of firings as the economy slows.

Initial jobless claims rose by 12,000 to 500,000 in the week ended Aug. 14, Labor Department figures showed today in Washington. Claims exceeded all estimates of economists surveyed by Bloomberg News and compared with the median forecast of 478,000. The number of people receiving unemployment insurance fell, while those getting extended benefits increased.
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The barrage of grim US economic data continued Thursday with the Labor Department’s report that first-time claims for unemployment benefits jumped by 19,000 last week, bringing the total to 479,000, the most since April. Like virtually all of the recent US economic reports, the jobless claims figures were worse than analysts’ forecasts.

Economists had predicted that first-time filings would fall to 455,000. Bloomberg News said the new claims figure exceeded the highest estimates by economists whom it had surveyed. The four-week moving average of claims also increased, rising by 5,250 to 458,500.
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Overall economic activity in the US improved in recent months but certain districts witnessed slowdown, according to the Federal Reserve.

The apex bank also noted that manufacturing activities slowed down in certain parts of the country.

These comments are part of the Federal Reserve’s latest Beige Book, which provides a snapshot of economic activities in 12 states, for which data was collected on or before July 19.

Noting that economic conditions continued to improve in recent months, the central bank said that two districts Atlanta and Chicago saw slowdown in economic activity.
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Federal Reserve Chairman Ben S. Bernanke said he’s concerned about the costs U.S. joblessness is imposing on the economy and that the central bank is telling field examiners to encourage lending to creditworthy businesses.

“One particularly difficult issue is the continued high rate of unemployment,” Bernanke said today at a forum in Detroit. “High unemployment imposes heavy costs on workers and their families, as well as on our society as a whole.”

Bernanke’s appearance in Michigan, where the 14 percent unemployment rate is the country’s highest, is part of a series of Fed gatherings around the nation to discuss small-business lending. Policy makers are seeking to encourage the flow of credit that would allow small companies to expand and hire, bringing down the jobless rate from close to a 26-year high.
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