Mixed report on unemployment

05.03.09
By Nicholas Storie

Although new jobless claims have fallen, the number of people who continue to be unable to find work remained high, according to figures from the Labor Department.

In the week up to April 25, approximately 631,000 new jobless claims were filed. In comparison, 645,000 were filed the previous week.

Meanwhile, the same report revealed that a record-high number of people continued to file for unemployment insurance during the week ending with April 18, suggesting that although layoffs may be abating, companies are holding back on filling positions.

The current unemployment rate is at 8.5 percent, according to the most recent figures available, but some analysts predict it could rise to a high of more than 9 percent in the next few months.

On Wednesday, the Labor Department released a report showing that unemployment reached 10 percent or higher last month in over 100 metropolitan areas. Eighteen areas have a jobless rate of at least 15 percent.

The figures come during the same week that the Conference Board's consumer confidence index showed the largest increase since last summer.

Still, in addition to unemployment, a large number of challenges to economic recovery remain - including a rising rate of foreclosure filings and a large number of people struggling with credit card debt.

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Experts predict unemployment could continue to rise