Weekly Unemployment Claims Drop to 473,000, Last Week Revised Up to 504,000; 4-Week Average Rises to 486,750

Weekly claims fell 31,000 from the last week’s total total of 504,000 (revised up by 4,000). Nonetheless, 473,000 can hardly be considered encouraging. It is solidly in territory that suggests the economy is shedding jobs.

Once again the pile of overoptimistic economist estimates continues to mount. Today, weekly unemployment claims hit 500,000 exceeding every forecast. This is (at minimum) the 4th time since March every economist was overly optimistic regarding unemployment claims. Nicely done guys.

Bloomberg reports Jobless Claims in U.S. Rose to Highest Since November

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.

Estimates of the 42 economists surveyed by Bloomberg ranged from 460,000 to 495,000. The government revised the prior week’s claims figure to 488,000 from a previously reported 484,000. Initial filings last week were the highest since the week ended Nov. 14, 2009.

Claims have increased in four of the last five weeks.

Weekly Claims Report

Please consider the Unemployment Weekly Claims Report for August 19, 2010