Jobless rolls at 18-year high, but new claims drop slightly

By Jeannine Aversa

Associated Press

WASHINGTON – Americans filed fewer new claims for state unemployment insurance last week but the number of laid-off workers drawing jobless benefits hit an 18-year high, reflecting the sour economy.

The Labor Department reported today that for the work week ending Nov. 11, new jobless claims fell by a seasonally adjusted 8,000 to 444,000.

Even though new claims declined for the third straight week, the level of claims remained high enough to suggest that the labor market continues to be weak.

The number of laid-off workers continuing to receive unemployment benefits rose to 3.83 million for the work week ending Nov. 3, indicating that jobless workers are having a difficult time finding employment. That was the highest level since Feb. 12, 1983.

Companies have cut production, trimmed hours and let workers go in response to the lagging economy and the Sept. 11 attacks.

The nation’s unemployment rate soared from 4.9 percent in September to 5.4 percent in October and companies eliminated 415,000 jobs, the biggest one-month drop in 21 years. Economists predict the jobless rate will climb and payrolls continue to be trimmed.

Fallout from the more-than-yearlong economic slump, along with the terror attacks, caused the economy to contract at a rate of 0.4 percent in the July-September quarter. Many economists are predicting a bigger drop in the current quarter. That would meet one common definition of a recession: two consecutive quarters of declining economic output.

On Wall Street, the Dow Jones industrial average was up 36 points in the first hour of trading as investors felt more confident about an economic turnaround in 2002.

The decline in new claims last week put them at the lowest level since the week ending Sept. 15. That earlier report, however, did not capture layoffs resulting from the terror attacks because most affected workers were not able to file applications for jobless benefits that week. In the two weeks following that report, jobless claims rocketed.

Some economists believe the unemployment rate will top out at around 6.3 percent in the first quarter of 2002.

The more stable four-week moving average of new claims, which smoothes out week-to-week fluctuations, declined last week to 474,750, the lowest since early October.

In another report, the Commerce Department said businesses whittled inventories by 0.5 percent in September, following a 0.2 percent drop in August, further evidence that companies are making progress getting rid of excess stocks of unsold goods.

In an effort to prevent the economy from sinking deeper into recession, the Federal Reserve has cut interest rates three times since the terror attacks, bringing the total rate reductions this year to 10.

Economists are hoping lower borrowing costs will induce consumers and businesses to spend and invest, which could prevent further weakening of the economy.

Still, a big fear among analysts is that rising unemployment and lingering fears about more attacks and anthrax scares might cause consumers to become tightfisted.

Economists are counting on the Fed’s aggressive easing, President Bush’s tax relief enacted earlier this year and new tax cuts and increased government spending being contemplated by Congress to lead to a recovery by the second half of next year.

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Alina Langbehn, 6, center, and Vera A., 6, right, sit on a swing together at Drew Nielsen Neighborhood Park after school on Tuesday, Jan. 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett council votes to renovate Drew Nielsen Park

Construction on the $345,000 upgrade could start as early as this fall.

Northshore School District bus driver Stewart O’Leary pictured next to his buses shattered drivers side windshield on Friday, Feb. 14, 2025 in Bothell, Washington. (Olivia Vanni / The Herald)
‘Put me in, coach’: Bus driver back at work after struck by metal bar

Stewart O’Leary, a Northshore employee, has received national attention for his composure during a frightening bus trip.

Lynnwood councilor Joshua Binda speaks during a Lynnwood City Council meeting on Wednesday, Nov. 20, 2024. (Olivia Vanni / The Herald)
Does the Lynnwood Council VP live in Lynnwood? It’s hard to say.

Josh Binda’s residency has been called into question following an eviction and FEC filings listing an Everett address. He insists he lives in Lynnwood.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

An American Robin picks a berry from a holly tree on Thursday, Feb. 13, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Calling all birders for the annual Great Backyard Bird Count

The Audubon Society will hold its 28th annual Great Backyard… Continue reading

A view of one of the potential locations of the new Aquasox stadium on Monday, Feb. 26, 2024 in Everett, Washington. The site sits between Hewitt Avenue, Broadway, Pacific Avenue and the railroad. (Olivia Vanni / The Herald)
Initial prep work for AquaSox stadium to start, with $200k price tag

The temporary agreement allows some surveying and design work as the city negotiates contracts with designers and builders.

Aaron Kennedy / The Herald
The Joann Fabric and Crafts store at 7601 Evergreen Way, Everett, is one of three stores in Snohomish County that will close as part of the retailer’s larger plan to shutter more than half of its stores nationwide.
Joann store closure plan includes Everett, Arlington, Lynnwood locations

The retail giant filed a motion in court to close approximately 500 stores in the U.S.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.