The Labor Department has released last week's U.S. joblessness benefit
claims numbers and it's more bad news. Last week saw an additional
37,000 claims, bring the total to a seasonally adjusted 464,000 jobless
workers. That's significantly above forecasts. Here's what market
watchers have to say:
- Disappointing News in Two Ways Reuters
reports that the disappointing rise in jobless more than erases the
prior week's decline in joblessness. "Analysts polled by Reuters had
forecast claims rising to 445,000 from the previously reported 429,000
in the July 10 week, which was revised slightly down to 427,000 in
Thursday's report." So the reported numbers are significantly worse than
- Job Creation Not Returning, 24/7 Wall Street's Jon Ogg frets. "It may not be much
of an economic recovery any longer, but whether it is a recovery or the
turn to a double-dip recession it isn't happening for jobs. ... The
continuing claims are more volatile as a week ago was a large rise.
Let’s hope that this is still an aberration from recently-axes Census
workers and from teachers
in summer. Still, it looks and feels like the job creation is not
- July is Always Volatile, Daily Finance's Joseph Lazzaro points out.
"The Labor Department cautioned that the initial jobless claims
statistic can be especially volatile during July/August, due to normal,
season auto company end-of-the-model-year shutdowns to retool for next
year's models, and due to other seasonal factory shut-downs."
of Joblessness The Washington Independent's Annie Lowrey explains: "The
sustained, high number of initial claims feeds the sustained, high
jobless rate. Economists say initial claims need to fall into the
300,000s to demonstrate job growth and to spark a drop in the overall
unemployment rate. Claims have remained around 450,000 since the
beginning of the year."
Weekly Data Like This Not Always Useful, The Big Picture's Peter Boockvar writes, breaking free from the pack. "The distortion of the seasonal
auto shutdowns that didn't happen at GM combined with the July 4th
holiday has made the initial claims portion of the data too cloudy to
analyze week to week and we thus should average the prior couple of
weeks." Unfortunately Boockvar's strategy yields the same bad news.
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