September 12, 2003	Friday	Rajab 14, 1424

WASHINGTON, Sept 11: Unemployment queues lengthened to a two-month record last week, data showed on Thursday, and a new analysis suggested the “true” US unemployment rate was now 9.1 per cent.

The number of first-time jobless benefit claimants in the week ended September 6 rose 3,000 to a two-month record 422,000, following a 22,000-strong leap the previous week, seasonally adjusted Labour Department data showed.

Analysts, who generally consider the jobs market is deteriorating if new claims exceed 400,000 a week, had been hoping for a decline, said BMO Financial Group analyst Paul Ferley.

“But the level of claims has moved even further above 400,000, pointing to another decline in payroll employment for September,” he said.

Last week, the government said US employers had unexpectedly slashed 93,000 jobs in August, demolishing hopes of a revival in the crippled jobs market despite signs that an economic recovery is gathering pace.

The unemployment rate was 6.1 per cent in August, it said.

But the true unemployment rate was more like 9.1 per cent, according to an analysis of the August data by international outplacement agency Challenger, Gray and Christmas, Inc.

“Most only see the government statistic of the unemployed — 8.9 million in August — but there are 4.8 million who are not working but want jobs,” the agency report said.

“Because they did not actively seek employment during the last month, they were not counted by the government as part of the unemployed labour force,” it added.

If those people were counted, the unemployment rate was 9.1 per cent in August, Challenger, Gray and Christmas said.

“It is a truer reflection of job market weakness,” the agency said.

On their own, the jobless figures appeared to reflect an economy heading to recession, but other data, including fresh trade figures showing rising imports and exports, were telling a different story, Ferley said.

“The labour market remains weak but the economy is still benefitting from very strong productivity gains, he said.

Another sign of the economic recovery appeared in the new trade figures for July, which showed rising exports and imports.

An increased appetite for foreign industrial supplies and consumer goods helped to boost imports by $2.0 billion, or 1.6 per cent, to $126.47 billion — the highest since September 2000.

Foreigners, meanwhile, snapped up US capital goods, industrial supplies, and cars, driving up exports by $1.7 billion, or 2.0 per cent, to $86.15 billion.—AFP