A U.S. Labor Department report out Thursday showed an increase in jobless claims one day after the first presidential debate.
First time claims for Americans filing for unemployment came in at 367,000 for the week ending Sept. 19, an increase of 4,000 over the prior week, showing the U.S. economy remains weak and out of balance regarding the jobs market.
Another report due out from the Labor Department tomorrow, according to a Bloomberg Business report, may show employers added a relatively weak 115,000 workers in September, and that the jobless rate rose to 8.2 percent from 8.1 percent. The weak economic numbers come in the heat of election season with the presidential race in a statistical tie according to some major polls.
“We’re not going anywhere quickly in the jobs market,” said Ryan Sweet, senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, who predicted applications would rise to 368,000. “The job market is just more of the same. Layoffs aren’t the big problem, it’s the lack of hiring.”
The increase in unemployment and a string of weak jobs reports in 2012 recently sparked a move the Federal Reserve to purchase $40 billion of mortgage debt a month until the labor market improves significantly. However analysts say Americans and businesses find it difficult to borrow due to new banking regulations and a poor economy.
Meanwhile, announcements of corporate cutbacks continue. On Sept. 27, Campbell Soup Co. (CPB), the world’s largest soup maker, announced it would close two plants and lay off over 700 workers due to shrinkage of domestic demand coupled with increased productivity.
Adding to the jobless, on Oct. 2, Juniper Networks Inc. (JNPR), the world’s second-biggest maker of networking equipment, announced it will trim 500 jobs, which amounts to about 5 percent of its workforce.