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To: Taro who wrote (452164)	1/29/2009 12:05:01 PM
From: tejek	Read Replies (3) \| Respond to of 1578027

Record number standing in unemployment lines Initial jobless claims rise 3,000 to 588,000; continuing claims hit 4.78 million By Rex Nutting, MarketWatch Last update: 11:14 a.m. EST Jan. 29, 2009 WASHINGTON (MarketWatch) -- Unemployment lines stretched to the longest on record, the Labor Department reported Thursday, a sign that the U.S. labor market continues to worsen. Continuing jobless claims rose by 159,000 in the week ended Jan. 17 to a seasonally adjusted 4.78 million, the most since the government's records began in 1967. That is the same week that the government surveyed hundreds of thousands of workplaces and households to gather information for the January employment report. Meanwhile, the number of new claims for state unemployment benefits also increased, up 3,000 to a seasonally adjusted 588,000 in the week ended Jan. 24. This put the number just 1,000 below the 26-year high for initial claims set a month ago. Read the full report. Meanwhile, the four-week average of new claims rose by 24,250 to 542,500. The four-week average draws the attention of economists and investors because it smoothes out distortions caused by bad weather, strikes or the timing of holidays. "We see no chance of this picture changing in the foreseeable future," wrote Ian Shepherdson, chief economist for High Frequency Economics. "We expect net job losses of about 3 million through the first half of this year." Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new employment. The claims data show that businesses are laying off workers at a rapid pace and that finding a replacement job is proving ever harder for those who've lost work. Compared with the same week a year ago, first-time jobless claims are up about 63%, while continuing claims are up 71%. The data come from state unemployment offices' reports based on actual filings, not a statistical sample. Anecdotal evidence also points to higher joblessness. Major companies have been announcing layoffs, totaling more than 100,000 just this week alone. Those layoffs will actually take several months to play out. The insured unemployment rate, representing the proportion of covered workers who are receiving benefits, rose to 3.6%, the highest in 25 years. In December, 524,000 nonfarm payroll jobs were lost, capping the worst year for U.S. job losses since 1945. The payroll figures for January will be reported on Feb. 6, with economists currently expecting a loss of at least 500,000 for what would be the third consecutive month. Mike Englund, chief economist for Action Economics, lowered his January payroll estimate to a loss of 550,000. He expects the unemployment rate to rise to 7.5% from 7.2% in December. Typically, unemployment benefits run out after 26 weeks for those who are eligible. A total of 1.72 million people were collecting benefits under a federal program that extends unemployment benefits for an extra 13 weeks. The stimulus bill winding through Congress would extend that program further. Benefits are generally available for those who lose their full-time job through no fault of their own. Those who exhaust their unemployment benefits are still counted as unemployed if they are actively looking for work. In a separate report Thursday, the Commerce Department said orders for durable goods fell 2.6% in December after a downwardly revised 3.7% decline in November. See full story. In another report, the Commerce Department said sales of new homes plunged nearly 15% in December to a seasonally adjusted annual rate of 331,000, the lowest on record. See full story. Rex Nutting is Washington bureau chief of MarketWatch. marketwatch.com

To: Taro who wrote (452164)	1/29/2009 12:05:30 PM
From: tejek	Read Replies (1) \| Respond to of 1578027

U.S. Dec. durable goods orders down 2.6% By Greg Robb Last update: 8:30 a.m. EST Jan. 29, 2009 WASHINGTON (MarketWatch) - Orders for U.S.-made durable goods sank in December, falling 2.6% on weaker demand for a wide range of products, the Commerce Department reported Thursday. Excluding the 0.6% gain in transportation goods, orders fell 3.6%. The decrease exceeded the expected 2.0% fall forecast by economists surveyed by MarketWatch. It was the fifth straight decline in new orders. The report was weak across the board. One of the only bright spots was a jump in commercial aircraft. Shipments fell 0.7% in December, and were down 1.4% excluding transportation goods. Inventories rose 0.4.

To: Taro who wrote (452164)	1/29/2009 12:07:17 PM
From: tejek	Read Replies (2) \| Respond to of 1578027

China hit hard by global downturn Chinese officials are concerned about rising unemployment in urban areas [EPA] China's premier has said the global economic downturn has had a "big impact" on his country and called for better Sino-US ties to tackle the crisis. Speaking at the World Economic Forum in Davos, Switzerland on Wednesday, Wen Jiabao acknowledged that the downturn would probably lead to more protests and social unrest in China. "To be frank with you, the current crisis has inflicted a big impact on China's economy. "We are facing severe challenges in China, including shrinking global demand, overcapacity in some sectors, and rising unemployment in urban areas," he said. "[But] as a big responsible country, China has acted in a responsible way during this crisis." Unrest fears Wen's comments come in the wake of an increasing number of reports of unrest over jobs. More than 1,000 workers clashed with riot police in eastern China over unpaid wages two weeks ago. In November, hundreds of workers sacked from a toy factory in Guangdong province, southern China's export heartland, clashed with police and smashed buildings. Declining demand for Chinese exports has forced thousands of factories to close and newly unemployed migrants to stream from coastal manufacturing regions back to their rural hometowns. As many as 40 million workers from rural areas could be without jobs soon, according to a Chinese Communist Party School official cited by Britain's Telegraph newspaper. Despite all that, and the International Monetary Fund predicting on Wednesday that global growth would fall to its slowest pace in six decades, Wen remained upbeat about China's prospects. He said China's economic growth would still grow by eight per cent this year - just down from the nine per cent recorded last year - which could help restore confidence in global markets and stem the financial crisis. "We have the confidence, conditions, and ability to maintain steady and fast economic growth and continue to contribute to world economic growth,'' he said in his speech. Beijing announced a $586bn stimulus package in November to boost domestic consumption through increased spending on construction and other projects, and Wen said he said seen "small signs of recovery which give me hope". 'Blind pursuit of profit' Wen said positive relations with the US would help alleviate the economic downturn. Despite his concerns Wen said he is confident that China can weather the global crisis [AFP] "Peaceful and harmonious relations will make both winners and a confrontation will make both losers," he said. But his call for co-operation was overshadowed by a dispute over Beijing's exchange rate policy after Timothy Geithner, the new US treasury secretary, called China a "currency manipulator" last week, using a term the previous administration avoided for years. Wen also criticised US and Western financial institutions, blaming "an unsustainable model'' of low savings and high consumption for the financial crisis. He said financial institutions were involved in a "blind pursuit of profit'' and displayed "a lack of self-discipline''. David Li, from the Centre for China and the World Economy, told Al Jazeera that the downturn was already testing relations between Beijing and the new administration in Washington, and he expected "an increase in tension". "But overall I am optimistic because the Chinese economy is not dependent on trade with the US or with the rest of the world," he said. "The policy emphasis and the driving force will come from domestic investment and domestic consumption." english.aljazeera.net