Jobless Claims Jump in Aftermath of Attacks

September 27, 2001 (PLANSPONSOR.com) - The number of Americans lining up for state unemployment benefits rose last week to the highest level in more than nine years, according to the Labor Department.

The number of initial jobless claims rose by 58,000 to 450,000 for the week ended September 22 in the week following the terrorist attacks in New York, Washington and Pennsylvania.  That was well ahead of expectations, but did not yet reflect the swelling number of airline industry layoffs.

The Labor Department said preliminary data showed an 11,000 rise in claims from New York, the state hit hardest after two hijacked planes slammed into the World Trade Center.  Grounded flights contributed to an uptick in jobless claims among Michigan autoworkers, stymied by the inability to work with parts needed from Canada.

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Participants Shift Back Towards Bonds

September 26, 2001 (PLANSPONSOR.com) - Participant transfer activity returned to normal on Tuesday, however, 401(k) funds were moved back towards fixed income after yesterday's brief flirtation with equities, according to the Hewitt 401(k) Index.

Despite a moderate up-tick in the stock market yesterday, participants still favored the fixed income market continuing to follow a trend which has seen assets flowing towards debt every day this month bar one.

Participant volume, though classified as “normal” yesterday, was a little more than half the usual level for the Hewitt Index, which tracks the investment activity of 1.5 million participants in 401(k) plans.

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Transfer activity, as a percentage of the $71 billion tracked by the Hewitt Index, settled at 0.04%

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