Unemployment Claims Highlight Long-Term Problem (PNC)

The number of Americans filing continuing claims for unemployment insurance increased by 37,000 to 4,558,000 for the week ended February 27, the Labor department said on Thursday. This was higher than economists’ expectations of 4,500,000. The sluggish hiring trend has continued to dampen recovery in the labor market.

“Continuing claims represent the pool of workers who have been unable to get back into the labor market quickly,” said Robert Dye, senior economist at PNC Financial Services Group (NYSE: PNC). “Long-term unemployment remains a significant problem and will remain a drag on the economy, as it has for some time now,” Dye added.

Dye also believes that the reluctance of small businesses to commit to hiring adds substantial pressure to recovery in the job market.