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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

New weekly jobless claims drops, but so does first-quarter GDP

New weekly jobless claims filed last week dropped by 14,000, in line with expectations, but first-quarter U.S. GDP was revised slightly downward, from a 3.2 percent to a 3 percent annual rate, the government said moments ago, in two data releases.

The Labor Department said that 460,000 new jobless claims were filed last week.

The four-week moving average of new unemployment claims, which smooths out volatility in the week-to-week numbers, actually rose slightly by 2,250, to 456,500.

In a piece of good unemployment news, the number of continuing claims dropped last week to 4.607 million from 4.656 million the previous week.

The bottom line on unemployment is this: The number of new weekly jobless claims remains stubbornly stuck at a rate that is just above where it needs to be for the economy to start adding new jobs at a consistent rate.

Economists say that the weekly jobless claims number needs to get down into the low 400,000s or, better, upper 300,000s and stay there for the economy to start adding meaningful new employment.

The official U.S. unemployment rate is 9.9 percent, up from 9.7 percent in March. The May number comes out next week, and it's expected to remain at about the same level, however forecasters are predicting that some 500,000 new jobs will have been added.

On GDP, the slightly downward revision was unexpected. Quarterly GDP gets multiple revisions as new data come in, and the revision went the opposite way that forecasters expected. Economists said that first-quarter GDP would actually be revised upward, from 3 percent to 3.5 percent.

Nevertheless, the U.S. economy is predicted to grow at a roughly 3 percent rate for the year, so small-scale revisions in GDP are in line with long-term expectations.

By Frank Ahrens  |  May 27, 2010; 8:26 AM ET
Categories:  Data  
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Comments

The dems keep changing the figures to hide the truth...
I can only pray America wakes up...

Posted by: DwightCollins | May 27, 2010 1:12 PM | Report abuse

One again America's branch of al-Qaeda, the GOP, hates the fact that fewer Americans are jobless.

If they could, the Republicants would export all US jobs overseas to their comrades in Red China.

Posted by: WillSeattle | May 27, 2010 3:06 PM | Report abuse

Does the concept of "statistical insignificance" sound familiar? Really, is anyone out there listening/thinking?

HELLO...is this thing "on"?

Posted by: wcmillionairre | May 27, 2010 3:23 PM | Report abuse

From WillSeattle: "One again America's branch of al-Qaeda, the GOP, hates the fact that fewer Americans are jobless."

Well, WILL...first of all, this measure does not indicate that "FEWER AMERICANS ARE JOBLESS". In fact, it only indicates that another half-million of our friends and neighbors have lost the ability to support themselves and their families.
Second, that whole Democrat/Republican "Spy vs.Spy" mentality is the indicator of a small intellect.

You may wish to do something about that...if possible.

Posted by: wcmillionairre | May 27, 2010 3:27 PM | Report abuse

"One again America's branch of al-Qaeda, the GOP, hates the fact that fewer Americans are jobless.
If they could, the Republicants would export all US jobs overseas to their comrades in Red China.
Posted by: WillSeattle | May 27, 2010 3:06 PM | Report abuse"

first, the immigration reform act of 1965 brought the low pay asian worker into America...

second, more dems chair the india caucas in the house and the friends of india in the senate...

third, obama has done nothing to stop outsourcing...

in fact our banks this and next year will send their back office and I.T. functions to india...

where is obama and the dems on this...
well...

Posted by: DwightCollins | May 27, 2010 3:45 PM | Report abuse

One again America's branch of al-Qaeda, the GOP, hates the fact that fewer Americans are jobless.

--------------

That made me laugh out loud.

Posted by: mrdorkbutt | May 27, 2010 3:46 PM | Report abuse

You forgot to add the additional five to seven percent of people who have given up looking. So, I'd guess that a "jobs recovery" is farther distant than you think.

Posted by: veerle1 | May 27, 2010 5:58 PM | Report abuse

When the Democrats first extended unemployment benefits...The numbnuts (On the right side of the aisle) were screaming about Libs are spending our money on lazy people who don't want to work...And many States official's were complaining about extension of unemployment would break them more.....

REPUBLICANS ARE STILL GOING TO LOSE COME NOVEMBER....WHAT?...YOU DON'T THINK THE MINORITIES AREN'T GOING TO COME OUT IN DROVES?

CAN ANYONE SAY? "SERVE WHITES ONLY"
CAN ANYONE SAY? "PAPER PLEASE"

Posted by: dove369 | May 27, 2010 6:17 PM | Report abuse

The dems keep changing the figures to hide the truth...
I can only pray America wakes up...

\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
The only ones whom hide the truth was the Bush Administration with those bogus numbers on the "jobs gain"....Even an idiot should know that you don't count a temporary job as "full permanent job-hire"

Oooohhhh that's right! He had a bunch of "incompetent idiots" and he was the D-E-C-I-D-I-N-G LEADER!!!

AND WE DID WAKE UP....DARN SHAME WE WOKE AFTER HE DESTROYED THIS GREAT COUNTRY!!!

Posted by: dove369 | May 27, 2010 6:24 PM | Report abuse

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