Jobless claims reach nine-year high

Oct. 4, 2001
New claims for unemployment benefits jumped to the highest level in nine years last week because of job cuts resulting from the September 11 terrorist attacks hurting the travel and tourism industries. New claims for state jobless benefits shot up 71,000 to 528,000 after jumping 64,000 the prior week to the highest since late July 1992, the Labor Department said today. The four-week moving average
New claims for unemployment benefits jumped to the highest level in nine years last week because of job cuts resulting from the September 11 terrorist attacks hurting the travel and tourism industries. New claims for state jobless benefits shot up 71,000 to 528,000 after jumping 64,000 the prior week to the highest since late July 1992, the Labor Department said today.

The four-week moving average for jobless claims, which smoothes out fluctuations in the weekly data, rose to 453,500, the highest since December 28, 1991.

Since the attacks, more than 100,000 layoffs have been announced, consumer confidence has tumbled and billions of dollars worth of business has been lost. With uncertainties from the attacks and economists forecasting a recession, economists say they think businesses will be reluctant to hire new workers in coming months.

As of yesterday, only one carrier, Overland Park, KS-based Yellow Corp., has had job reductions since the previous jobless statistics were released. The LTL carrier reduced its salaried and non-union hourly workforce by 151 positions Monday. However, the rise in jobless claims affects all sectors of the industry, since unemployment benefits help shape indexes such as consumer confidence.

The unemployment rate shot up to 4.9% in August from 4.5%, the biggest one-month jump in more than six years as businesses eliminated 113,000 jobs. It is expected to rise further when the government releases its jobs report Friday, the first monthly data since the attacks.

About the Author

Tim Parry

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!