New US weekly jobless claims jump
Updated 7 months ago
New claims for US unemployment benefits jumped last week, in line with market expectations, as employers cut payrolls to cope with the severe recession, government data showed Thursday.
The Labor Department said first-time claims for unemployment insurance benefits rose to a seasonally adjusted 554,000 in the week ended July 18, after a revised 524,000 in the preceding week.
The average consensus forecast was for 557,000 initial claims.
“It’s the third or fourth week of a lot of volatility in our series,” a department statistician said.
Over the preceding three weeks, initial jobless claims had fallen by a cumulative total of 106,000.
The department explained that the seasonally adjusted data was skewed because industrial layoffs that usually occur in early July happened earlier this year with the bankruptcies of auto giants General Motors and Chrysler.
On a four-week moving average, a more reliable indicator of the labor market, the number of new claims filed fell to 566,000 from the previous week’s revised 585,000.
With the unemployment rate at 9.5 percent, a 26-year high and expected to go higher, President Barack Obama’s administration is under pressure to do more to stimulate the ailing economy which slid into recession in December 2007.
Critics say the 787-billion-dollar stimulus passed in February is making its way too slowly through the economy and has not done enough to stave off rising job losses.
Obama says the unemployment rate could hit the double digits this year as the economy grapples with the brutal recession.
Widely considered a lagging indicator, unemployment is expected to get worse even as the economy begins to stabilize and recover.
Larry Summers, Obama’s chief economic adviser, acknowledged recently that the rise in unemployment to a 26-year high “is obviously a major area of concern.”
“But contrary to a significant amount of commentary, this does not provide a basis for concluding that the Recovery Act is falling short of its goals,” he said.
The Labor Department reported that for the week ended July 11, the insured unemployment rate was 4.7 percent, unchanged from the prior week.
The number of people collecting unemployment insurance benefits dropped to 6.225 million, from a revised 6.313 million.
The four-week moving average to the week ended July 11 also fell, to 6.541 million from a revised 6.674 million.
8 comments
In other words, “we’re trying to use the fact that there are just about no jobs left to cut (with real unemployment over 20%) as a smoke screen by twisting the statistics into a false analogy.. that being that ‘things are getting better’ because fewer and fewer people are applying for unemployment each week.. the fact that companies have no more people to fire without shuttering their doors….we’ll leave that out”.
To control a thing, you have to understand a thing.. And they understand that people can’t critically think in America, so they will play numbers games to stave off riots..
Here’s an example of what they are doing..
as icecream sales go up, so do violent crimes! (fact)
So, we can say “that’s show with statistics, we should outlaw icecream! it will reduce crime!”.. yet, we’d be WRONG. It’s called correlation, not causation. There is another piece of information, left out, that ALSO correlates, and is causal (or, is the reason behind the numbers).. TEMPERATURE.. as summer temps go up, so do icecream sales and violent crime. You can’t outlaw summer temps, can you. But you can’t understand what to do if you don’t have the PERTINENT information.
Same with these numbers. Companies are way down on profits, so they are also down on production needs, so they are down on employee needs.. and at some point, losing more employees means NO production at all.. The slowing unemployment applications combined with NO NEW JOBS being created does NOT mean “things are getting better”, it means “we’re just about to the edge of the cliff”.. Too many more companies have not enough money to keep the few employees they have now, and those companies will have to shutter their doors (unemployment spike).. Then there’s no place for the currently unemployed to go back to.
Things aren’t getting better.. They’re teetering on the edge of full collapse.
A recovery is impossible without creating well paying jobs. Remember the American consumer is responsible for 70% of our economy. Unless Americans start purchasing again the economy cannot recover. This is the short sightedness of Globalization.
Plus there has been no change in the underlying structures that created the problem. The banks were simply given trillions thus creating the illusion of bank stabilization.
Make no mistake, there is no “shortsightedness” by the ruling elite when it comes to globalization. They understand full well what it is they are doing, and it will destroy America while creating an even bigger wealth gap across the planet.
Making 99% of the planet into a 3rd world nation leaves them free to enslave just about everyone. Globalization isn’t just about increasing some profits over the short term, the guys behind the curtains are taking over the world.
But, but, I thought Obama said the fire was out???
And this is the height of summer - when there are the most jobs, especially in the north due to construction season.
I does not look good. Get ready for a rough ride this winter.
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