Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights jobless claims.
- Labor strikes by the Communications Workers of America and Verizon Communications were cited as a special factor in the recent increase in initial jobless claims which were up 5,000 to a total of 417,000. At least 12,500 initial claims were filed in the week ending 8/13/2011 and at least 8,500 initial claims were filed in the week ending 8/20/2011 due to the strike.
- The four-week average increased as well, up 4,000 to a 407,500 level, ending a period of continuous decreases. The 4-week average is 7,000 lower than the last month. The 400,000 level is generally considered by economists as the point at which the economy is creating more jobs than losing.
- On the other hand, continuing claims showed a significant improvement of 80,000 to 3.641 million for the lowest level since September 2008 and the financial meltdown. Other than the Verizon strike, the decrease in continuing claims indicates some improvement in the labor market.
- Assuming that the strike caused only a temporary increase in new jobless claims, NAR expects about 1.5 to 2 million net new jobs in the next 12 months.
