unemployment benefits

So Far, 25 States Have Emptied Their Unemployment Funds

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You have to love how utterly shameless these Republican oligarchs are. In the middle of a massive recession, a Republican governor is complaining about "Rolls Royce" unemployment benefits in Indiana. By "Rolls Royce," I assume he means anyone who's getting enough money to pay for heat is living too damned high on the hog.

Maximum weekly unemployment benefit in Indiana: $360.

But that's not even news, is it? That the party that so happily poured billions of untracked dollars down the memory hole in Iraq is suddenly so thrifty when it comes to us cannot be a shock to any sentient being:

The recession's jobless toll is draining unemployment-compensation funds so fast that according to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks.

The shortfalls are putting pressure on governments to either raise taxes or shrink the aid payments.

Debates over the state benefit programs have erupted in South Carolina, Nevada, Kansas, Vermont and Indiana. And the budget gaps are expected to spread and become more acute in the coming year, compelling legislators in many states to reconsider their operations.

Currently, 25 states have run out of unemployment money and have borrowed $24 billion from the federal government to cover the gaps. By 2011, according to Department of Labor estimates, 40 state funds will have been emptied by the jobless tsunami.

"There's immense pressure, and it's got to be faced," said Indiana state Rep. David Niezgodski (D), a sponsor of a bill that addressed the gaps in Indiana's unemployment program. "Our system was absolutely broke."

The Indiana legislation protected the aid checks, Niezgodski said, but it came after a give-and-take this spring in which Gov. Mitchell E. Daniels Jr. (R) said the state had been providing "Rolls-Royce benefits" and several thousand union workers countered by protesting proposed cuts at the state capitol. In January, the legislature is slated to consider a bill to delay the proposed tax increases intended to refill the fund.



UPDATE: Dems broke the filibuster at 2 a.m. EST.

You know, I'm beginning to wonder if the refusal to operate in good faith isn't a form of official malfeasance. Because voters should impeach these senators for simply refusing to do their jobs - like voting for this bill, which funds their unemployment benefits:

Senate Republicans said Thursday that they would try to filibuster a massive Pentagon bill that funds the wars in Iraq and Afghanistan, an unusual move that several acknowledged was an effort to delay President Obama's health-care legislation.

Late into the night, Democrats emerged from a huddle confident that they would muster the 60 votes needed to thwart the GOP effort at blocking the military spending bill. An antiwar liberal said he would set aside his reservations and support choking off the filibuster to keep the chamber on a timeline of holding a final health-care vote before Christmas. The vote on the defense spending bill was to occur after 1 a.m. Friday, too late for this edition.

The maneuvering came as Democrats were still trying to round up a 60th vote on the health-care legislation. Sen. Ben Nelson (Neb.), the last holdout in the Democratic caucus and the focus of an intense lobbying campaign by White House officials, rejected an abortion compromise aimed at bringing him on board. Nelson has said he would not support the package unless it explicitly bars the use of federal money for abortion services.

If Nelson's support can be secured over the weekend, Democrats are hopeful that they will be able to begin clearing the parliamentary hurdles that would allow final passage of their version of the legislation by Christmas Eve. That would meet their self-imposed deadline to pass the measure and begin negotiating with House Democrats to craft a final version to send to the president.

Republicans have said their goal is to block the bill and force Senate Democrats to go home and face their constituents, hoping for some supporters of the measure to return after New Year's too fearful to back the legislation.

If the filibuster on the $626 billion defense bill succeeded, Democrats would have to scramble to find a way to fund the military operations, because a stopgap funding measure will expire at midnight Friday. Such an effort might have disrupted the very tight timeline on health care.

Republicans have provided the backbone of support for the wars in Iraq and Afghanistan, and many have praised Obama's troop increase in Afghanistan, so the plan to oppose defense spending Friday morning put them in an unusual position. Sen. John McCain (R-Ariz.) cited the thousands of earmarks in the bill in explaining his opposition, and others cited factors not related to health care.

But Sen. Sam Brownback (R-Kan.) was blunt in explaining his support of a filibuster. "I don't want health care," said Brownback, a member of the Appropriations Committee, which crafted the Pentagon funding bill.

[...] Democrats were furious. They believed they had a deal with Sen. Thad Cochran (Miss.), the top Republican on the Appropriations Committee, but by Thursday night Cochran was saying he was unsure how he would vote.

UPDATE: Dan Pfeiffer at the White House blog makes the following acute observation:

The depth of the hypocrisy involved is stunning. Back in 2007, when Congress was debating how to bring the war in Iraq to a responsible close, many of these same folks launched blistering accusations about Democrats' commitment to our troops. Here are just a few of the things they said:

"Playing politics with the critical funding that our troops need now is political theater of the worst kind." – Sen. John Cornyn, [Press Release, 4/26/07]

"We have plenty of time and plenty of opportunity to have political debates... but it’s just unconscionable to me to tie the hands of the very troops that we all say we support." – Sen. John Cornyn, [Transcript, Senate Republican News Briefing, 4/10/07]

"Every day we don’t fund our troops is a day their ability to fight this war is weakened." – Sen. Mitch McConnell, [Press Release, 3/31/07]

"No way to treat the troops, and it is entirely inconsistent with [Senators’] expressions of support for the troops." – Sen. Mitch McConnell, [Congressional Record, 10/4/07]

"I don't understand this attitude of, ‘We can play with; we can risk the lives of these troops by waiting until the last possible minute to get the funding to them." – Sen. Jon Kyl, [FOX News Transcript, 4/10/07]

"Our obligation to those troops must transcend politics." – Sen. Jon Kyl, [Press Release, 11/8/07]

Now though, as we debate not foreign policy but health care, the Department of Defense funding can wait? Incredible.


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You've got to love these compassionate conservatives...huh? From Think Progress--Steele’s Economic Plan: Take Away Unemployment Benefits:

This morning on NBC’s Today, RNC chair Michael Steele said that in order for banks to start lending to small businesses, the federal government should reduce the unemployment tax:

STEELE: Well, I think, first off, he should recognize that banks aren’t going to lend money to people who can’t pay them back. … So there’s — there’s this whole cycle of not understanding exactly how the economy works with respect to small-business owners. Take that pressure off of them. Let’s — let’s eliminate the capital gains tax. Let’s reduce the unemployment tax.

They have much more on why this is a terrible idea. Tax cuts and more tax cuts and the working class be damned. That's all these guys have got.


Let's see: No new jobs, benefit extensions screwed up and Christmas is coming. You'd think the administration and Congress would be doing something about this, but you'd have better luck asking Underdog:

Nov. 19 (Bloomberg) -- The number of Americans filing claims for unemployment benefits held at a 10-month low last week, a sign firings are letting up as the economy recovers.

Initial jobless claims were unchanged at 505,000 in the week ended Nov. 14, in line with the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington. The number of people collecting unemployment insurance dropped in the prior week, while those getting extended payments jumped.

The loss of 7.3 million jobs since the recession began in December 2007, the biggest drop of any postwar economic slump, makes an acceleration in firings less likely as consumers begin to spend. A rebound in hiring may take longer to develop as companies have ample room to boost hours for current employees before taking on additional staff.

“The labor market is improving, but at a glacial pace,” said Tom Porcelli, a senior economist at RBC Capital Markets in New York, who had forecast claims would fall to 503,000. “People are having a hard time finding a job as companies remain wary of the economic recovery. We expect it will be a jobless recovery.”


It's so predictable, isn't it? Every time there's legislation to help ordinary working people, the Republicans hold it for ransom until they get... tax breaks! Is there any illness for which they don't see tax breaks as the cure?

A $20 billion-plus package of homebuyer and business tax breaks was advanced in the Senate Monday, together with a precedent-setting expansion of unemployment benefits to help carry the jobless through the holiday season.

Ending weeks of delay, all but two Republicans joined Democrats on an 85-2 roll call to cut off debate. Procedural obstacles remain, but passage this week appears all but certain. The House is expected to take up the measure next and send it on to President Barack Obama for his signature.

Concessions to real estate and business interests helped deliver the package, a remarkable political amalgam given the pain so associated with the long-term unemployed.

The homebuyer credit, which remains controversial, will apply to houses worth as much as $800,000; and businesses of all sizes stand to benefit from a tax break first afforded this year just to those with gross receipts of $15 million or less.

But the biggest emotional driver for Democrats is the prospect of hundreds of thousands of workers exhausting their benefits before Thanksgiving and Christmas without some extension.

The bill seeks to fill this gap by adding up to 20 more weeks in aid — establishing a modern record of 99 weeks when state and federal benefits are counted together. With new unemployment numbers due out Friday, the measure testifies to the enduring joblessness problem even as the economy shows signs of new strength and recovery.


Dean Baker makes an astute observation:

Okay, I'm not on vacation, but this is a BTP flashback. My original write-up of this NYT news article was way too positive. This article was essentially a diatribe against Germany's welfare state. To make its case, it turned an incredible success story -- Germany's relatively low unemployment rate -- into a failure.

The basic deal is that Germany adopted an explicit policy of encouraging employers to shorten work hours rather than lay off workers. The government allows unemployment benefits to be used to pay workers to cover most of the loss in wages due to the shorter workweek.

As a result, Germany's unemployment rate has barely changed in the downturn. Its unemployment rate at present is 7.7 percent. This is down from 7.8 percent earlier in the year. Germany's unemployment rate in 2007 was 8.4 percent, 0.7 percentage points higher than the current level.

This is an incredible success story. Imagine Barack Obama's approval rating if the unemployment rate today was anywhere close to its 4.7 percent average for 2007. Think of the millions of unemployed workers who would not be struggling to pay their rent or mortgages or meet other bills if only our leaders were as smart as Germany's leaders. We could do something along the same lines in the U.S.

But NYT readers will be spared such thoughts because the article described the policy as a complete failure. To make its case, the NYT even used the German government's measurement of unemployment (which counts part-time workers as being unemployed) rather than the harmonized OECD measure that is directly comparable to the unemployment data in the United States.

This was not news reporting.

Dean is one of the best economists we have.


Mike's Blog Roundup

Talking Points Memo: New Ambassador Needed

First Draft: The last time you trusted a politician

Greg Palast: "Medical Loss Ratio" [MLR] is the fancy term used by health insurance companies for their slice, their take-out, their pound of flesh, their gross - very gross - profit.

The Plum Line: GOP Rep again accuses gay Obama advisor of covering up child abuse - even though his office was infromed the charge is false

Corrente: Leading Blue Dog suggests opening up Medicare for everyone

TheZoo: GOP blocks another attempt to extend unemployment benefits


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(from WMXdesign h/t Howie Klein)

If your unemployment ran out this week, you can thank Sen. Jon Kyl. Yes, the Republican whip objected to a quick vote that would have helped all those people. You can contact him here and thank him for his compassion:

Washington -- Key Senate Democrats tried unsuccessfully today to quickly pass legislation to give jobless workers in Michigan and other hard-hit states an additional 20 weeks of unemployment benefits.

That delays action on the high-stakes issue until at least next week.

Tom Clementson, a 58-year-old unemployed construction worker in Indian River, expressed frustration by the Senate's slow pace.

"So many people are out of work and need this extra money to put food on the table," said Clementson, who cashed his last check six weeks ago. "It seems like the Senate should spend more time on getting this passed."

Today's failed effort to quickly pass a bill followed the unveiling of a compromise bill by Senate Majority Leader Harry Reid of Nevada and key allies. The bill would give all states an extra 14 weeks of jobless benefits, plus an extra six weeks for states with unemployment rates of 8.5 percent or greater.

[...] Reid introduced the bill after reaching a deal with Sen. Jeanne Shaheen of New Hampshire, who had balked at the House-passed bill, which only gives extra benefits to the hardest-hit states.

[...] But when Reid asked senators to quickly pass the bill under a speedy procedure, Sen. Jon Kyl, R-Ariz., objected. That's enough to prevent a quick vote.

Kyl said he wanted to have time to look at the proposal and consider possible Republican amendments, and also ask the independent Congressional Budget Office to estimate its cost.

[...] While objecting to quick passage, Kyl said he expects "at the appropriate time," Republicans will "be able to work out some kind of agreement."

Kyl helped cause this mess. It's only good manners to help clean it up - but then, Republicans aren't big on personal responsibility, are they?


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(FDR - taking the right-wing brickbats in stride)

From April 28, 1935, his seventh Fireside Chat since taking office in 1933. FDR took the opportunity to lay out his plans for Social Security and Unemployment Insurance. The Social Security plan hadn't been voted on yet and was about to be introduced, along with a flood of relief and New Deal legislation. In 1935 these were new ideas that hadn't flown before.

FDR: “The program for Social Security that is pending before Congress is a necessary part of the future unemployment policy of the government. While our present and projected expenditures for work relief are fully within the reasonable limits of our national credit resources, it is obvious that we cannot continue to create governmental deficits for that purpose, year after year after year. We must begin now to make provision for the future. And that is why our Social Security Program is an important part of the complete picture. It proposes by means of old age pensions to help those who have reached the age of retirement to give up their jobs, and thus give to the younger generation greater opportunities for work. And to give to all, old and young alike, a feeling of security as they look towards old age. The Unemployment Insurance part of the legislation will not only help to guard the individual in future periods of layoff, against dependence upon relief, but it will by sustaining the purchasing power of the nation, cushion the shock of economic distress.”

Then, as now, any sort of social legislation that involving the common good was viewed with skepticism by the right-wing. This one was no different. Charges of Socialism popped up in the media, not to mention to aborted takeover attempt of the government by business and Wall Street interests in 1934.

FDR had his hands full. But he was able to weather the storm and the pundits and create many Programs that are in place today (although, it should be pointed out that a number of programs, including Social Security have withstood attempts at gutting during the Reagan years). Not listening or caving in to special interests or the hysterics proved to be the wise choice in the long run. The interests of the American people were what concerned him.

Something we could use a bit more of, especially today with the Health Care battle raging.


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Rachel talks to native South Carolinian Eugene Robinson about the sorry state of South Caronlina's education and health care systems in contrast to the attitudes of their politicians who are all opposed to health care reform.

MADDOW: We‘ve had that lot of reaction to our report last night about the appalling new data out of South Carolina that read like a statewide cry for health care reform.

Last night, we reported that South Carolina has among the country‘s worst women‘s reproductive health care. Rates of teen pregnancy, low birth weight infants, and infant mortality that are among the highest in the country. The rate at which young women in South Carolina received the important and effective HPV vaccine is also among the lowest in the country.

But wait, there‘s more—and it‘s all bad. The state has the fifth highest rate of obesity. It has the highest stroke death rate of all states in the country, and has maintained that distinction for five decades. It has the second highest death rate for oral cancer. The life expectancy in South Carolina is the third worst in the union.

If Governor Mark Sanford, for example, decided to move to Argentina permanently, he would be among people expected to live at least a year and a half longer than South Carolinians are—in Argentina.

Yes, South Carolina needs better health care. And to get it, it may need some civil servants who are slightly more interested in getting that for the state.

Governor Sanford, considered just a year ago a possible presidential contender in 2012, led the fight to turn down stimulus funding from the federal government, shunning federal unemployment benefits when South Carolina had the second highest rate of joblessness in the country. We should‘ve seen that as a symbol.

And that was all before he offered this fine moment in leadership.

Continue reading »


'Marginally Attached' U-6 Unemployment Rate Soars to 16.8%

There's the "official" unemployment rate, based on claims for unemployment benefits - and the more accurate U-6, which looks at discouraged workers who have stopped looking:

They were left out of the latest unemployment rate, as they are every month: millions of hidden casualties of the Great Recession who are not counted in the rate because they have stopped looking for work.

But that does not mean these discouraged Americans do not want to be employed. As interviews with several of them demonstrate, many desperately long for a job, but their inability to find one has made them perhaps the ultimate embodiment of pessimism as this recession wears on.

Some have halted their job searches out of sheer frustration. Others have decided it makes more sense to become stay-at-home fathers or mothers, or to go back to school, until the job market improves. Still others have chosen to retire for now and have begun collecting Social Security or disability benefits, for which claims have surged.

[...] The official jobless rate, which garners the bulk of attention from politicians and the public, was reported on Friday to have risen to 9.7 percent in August. But to be included in that measure, which is calculated by the Bureau of Labor Statistics from a monthly nationwide survey, a worker must have actively looked for a job at some point in the preceding four weeks.

For an increasing number of people in this country who would prefer to be working, that is not the case.

It is difficult to assign an exact figure, because of limitations in the data collected by the bureau, but various measures that capture discouragement have swelled in this recession.

In the most direct measure of job market hopelessness, the bureau has a narrow definition of a group it classifies as “discouraged workers.” These are people who have looked for work at some point in the past year but have not looked in the last four weeks because they believe that no jobs are available or that they would not qualify, among other reasons. In August, there were roughly 758,000 discouraged workers nationally, compared with 349,000 in November 2007, the month before the recession officially began.

The bureau also has a broader category of jobless it calls “marginally attached to the labor force,” which includes discouraged workers as well as those who have stopped looking because of other reasons, like school, family responsibilities or health issues. But economists agree that many of these workers probably would have found a way to work in a good economy.


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Here's another prime example of those wonderful compassionate conservatives for you. Bill Bennett on CNN's State of the Union just can't seem to get himself to endorse extending unemployment benefits right now, not because he doesn't care about the unemployed, of course. That would sound uncaring, now wouldn't it? He's just concerned that "they have already spent so doggone much money". When Donna Brazile points out that you didn't hear these complaints from Republicans when Bush was giving away the bank with tax cuts for the rich, war spending and giveaways to the drug companies, check out the look on Bennett's face. He doesn't have to say a word. That expression says it all.

They end up on a hard break, so we never do get to hear just what Bennett's compassionate conservative reply would have been, but I'm sure sure it would have been more of the same similar to his earlier remarks. I just wonder if Bill Bennett has ever had to want for anything in his entire lifetime? From the condescending look on his face while she was talking, I would guess not.

YELLIN: Let me ask you about that today because there are indications that there could be, at least the Treasury secretary is not ruling out the possibility of middle class tax increase. How would that play, politically, for President Obama, if that had to happen?

BRAZILE: Well as we know, that 95 percent of the tax relief that was offered in the American Recovery and Reinvestment Act went to middle class Americans. So I would hope at a time when middle class Americans and others are feeling the squeeze from the state governments and the local governments and now the federal government with the debt, I would hope that this would not be an issue right now. But if he's talking about putting this in the mix in terms of how we pay for health care reform, we need to take a look at it.

YELLIN: Bill, does that make you think, oh, this is going to look good in 2012 for the elections?

BENNETT: I'm really not thinking about that, but the interesting thing is, it's not so much President Obama and the Democrats versus the Republicans at this point. In many ways, it's President Obama and the American people. And the more they're hearing, the more skeptical they're becoming. Thus you see his polls going down. I don't want to be gloomy, I want to be upbeat. It's always morning in America as far as I'm concerned.

But the problem is, when people look at these various proposals, like health care or like cap and trade, what they're getting is, they may have additional burdens on them, additional taxes or additional costs. And that doesn't, A, encourage them, B, it doesn't encourage a long-term recovery.

Continue reading »


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There's no shortage of wingnuts out there, so why would George Stephanopoulos invite on someone too crazy for even Bill O'Reilly? Only people with a Malkin brain would believe and push across the notion that Americans would rather collect three hundred dollars a week on unemployment insurance rather than get a job that supplies benefits and pays a salary.

Yea, because there are so many jobs available, people will just wait until the insurance ends and then immediately get hired. I'm sorry, where are all these jobs again? On ABC's THIS WEEK Malkin made this bogus claim. A quick Google search uncovers that when Michelle claims Larry Katz once said that the benefits could discourage people from seeking employment, Katz actually said just the opposite during our current financial mess:

Traditionally, many economists have been leery of prolonged unemployment benefits because they can reduce the incentive to seek work. But that should not be a concern now because jobs remain so scarce, said Lawrence Katz, a labor economist at Harvard.

For every job that becomes available, about six people are looking, Dr. Katz said. “Unemployment insurance gives income to families who are really suffering and can’t find work even if they are hustling to look,” he said. With the economy still listing, he added, a temporary extension can provide a quick fiscal stimulus. And, Dr. Katz said, when people exhaust unemployment and health insurance, many end up applying for disability benefits, which become a large, unending drain on the Treasury.

It does help to fact check what conservatives say.

Malkin: If you put enough government cheese in front of people they are just going to keep eating it and you're just kicking the can down the road and just to hammer this point about the unemployment benefits extension again it was Larry Katz, who's a chief labor economist under the Clinton labor department who came out with a study and there are a lot of these economists who say this that if you keep extending these "temporary" unemployment benefits you're just going to extend joblessness even more.

Stephanopoulos: I don't know if I follow that though

Malkin: That was a Clinton economist who said it George...

Stephanopoulos: Choosing to take the unemployment benefits when a job is available?

Malkin: Seventy nine weeks already and then they're going to extend it by another thirteen weeks and what happens is according to these economist who have seen it including this Clinton economist is that people will just delay getting a job until the three weeks before the benefits run out.

Tucker: Well, that might be true when there are jobs out there that are available, but there are very few jobs available at the moment so I don't think people are using that unemployment benefit to be lazy instead of going out and searching for jobs...

Malkin: I'm not making a moral judgment, it's an incentive problem.

Tucker: But when businesses advertise the few job openings they have, they'll advertise twenty openings, they have six thousand applicants so I don't think that's the problem...

Hunt: If Starbucks were hiring, suddenly you'll see lines around the block. Anecdotally George, I have a kid who has some friends from college and many of them don't have jobs and boy, they are looking.

Stephanopoulos: And there are other states especially that are hard hit.

I know she probably worked on her government cheese talking point for a while, but it makes no sense except if we've all turned into little mouses now. With unemployment so high, where are the jobs that people are not bothering to take that bears any of this out? There's good money to be made in wingnutland, so she can attack Americans just trying to stay afloat by receiving unemployment compensation. I never realized how wonderful not having a job is.

Continue reading »


Yep, it's grim trying to get by in the states that give decent unemployment benefits. Imagine if you lose your job, and have the bad luck to live in one of the states that pays a pittance. Meanwhile, the Republicans scream about the "nanny state" and "being on the dole," even mocking job retraining programs:

Fred Wright and Tyrone Gatson live about 55 miles apart and worked as technicians for poultry producer Pilgrim's Pride Corp. until they were laid off last month.

But Mr. Wright, who lives and worked in Arkansas, is eligible for nearly twice as much in unemployment benefits as Mr. Gatson, who lives in Louisiana and worked at a different Pilgrim's Pride plant in that state, just over the border from Mr. Wright. Under Arkansas's more generous system, Mr. Wright can get $431 in weekly benefits, compared to Mr. Gatson's $284. He is also eligible to receive benefits for three more months than Mr. Gatson.

The differences highlight the inequities of the U.S. unemployment-insurance system, a complex patchwork of government programs guided by Washington but administered principally by the states. [See interactive map here.]

Economists say jobless benefits soften the blow of recessions by offering laid-off workers money for necessities like food and housing while they seek new jobs. The programs also prop up consumer spending, reducing the spread of layoffs in hard-hit areas. As the recession drags on, more Americans are relying on unemployment checks -- 6.7 million in the week ended June 6 -- than at any time since the Department of Labor began collecting the data in 1967.

Unemployment benefits are financed by state and federal taxes on employers; in general, employers pay higher taxes as more of their former workers tap benefits. States set most of the rules based on their own fiscal and policy choices, creating a maze of regulations to determine who qualifies for jobless benefits, how much money they get, and for how long.

Some students of the system say the inconsistencies weaken the safety net and allow many women, low-wage earners and part-timers to slip through. "Too many states are very stingy about paying out adequate unemployment benefits," says Maurice Emsellem, policy co-director at the National Employment Law Project, a research and employee-advocacy group. "Sometimes there's no rhyme or reason to it."


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Sometimes I wonder if reporters have any damned sense at all. The reason the unemployment rolls have dropped is simple - people (like me!) have tapped out their benefits:

June 18 (Bloomberg) -- The number of Americans receiving claims for unemployment benefits dropped for the first time since January, adding to evidence the job market is starting to thaw.

The number of people collecting unemployment insurance plunged by 148,000 in the week to June 6, the most since November 2001, to 6.69 million, the Labor Department said today in Washington. Initial claims rose by 3,000 to 608,000 in the week ended June 13, in line with forecasts.

The average number of claims over the last four weeks fell to the lowest level in four months, an indication that the U.S. economy is stabilizing after the worst recession in half a century. Even so, companies are likely to be slow to hire new employees, sending unemployment rates higher, analysts said.

“The labor market remains weak but it’s starting to stabilize,” said Maxwell Clarke, chief U.S. economist at IDEAglobal in New York. “An improvement in employment conditions and improvement in confidence go hand in hand with an improvement in consumer spending.”