The recent reports on initial unemployment claims have been pretty encouraging, but as the new report from the Department of Labor shows, progress is rarely a straight line.
New applications for unemployment benefits jumped 10,000 to 372,000 in the week ended Dec. 29, the U.S. Labor Department said Thursday, reflecting holiday-season volatility and showing little change in the U.S. labor market. The level of claims marked a five-week high. Initial claims from two weeks ago were revised up to 362,000 from an original reading of 350,000. Economists surveyed by MarketWatch expected claims to total a seasonally adjusted 360,000.
To reiterate the point I make every Thursday morning, it's worth remembering that week-to-week results can vary widely, and it's best not to read too much significance into any one report.
In terms of metrics, when jobless claims fall below the 400,000 threshold, it's considered evidence of an improving jobs landscape, and when the number drops below 370,000, it suggests jobs are being created rather quickly. We've been below the 370,000 threshold just five of the last ten weeks, though the further we get from the effects of Hurricane Sandy, the more these figures should improve.
Above you'll find the chart showing weekly, initial unemployment claims going back to the beginning of 2007. (Remember, unlike the monthly jobs chart, a lower number is good news.) For context, I've added an arrow to show the point at which President Obama's Recovery Act began spending money. Also note, tomorrow the job totals for December will be released by the BLS.
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The United States is on a glide path to anarchy so long as we continue to let a small minority of the country -- in the form of TEa Party lawmakers -- essentially tell us all what to do and block anything reasonable on extreme ideological grounds. Any issue is ripe to be hijacked by these thugs if they or their basement-blogger base decide to make a stand and fight, no matter the consequences. This is not a "Congress" problem. This is a Republican/Tea Party/extreme conservative problem. America is being slowly choked to death by the obstinacy of a few lawmakers elected by a couple thousands neo-secessionists. - progressive
The figures are trending positively despite efforts by the likes of Papa Johns, Olive Garden and others who've threaten us with their puissant egos and nothing else!
Finding a good job is still a major challenge, but unlike what we're told on outlets like FOX, we are gradually moving in a sound direction because of President Obama's insistence on changing policy domains from trickle down to more equitable engagement on behalf of middle class citizens!
Too bad such economic progress is causing such chagrin among those who wear Republican suits!
For thirty years, the Republican economic policies refused to look at demand, and instead, focused on job creation that cannot possibly improve unless demand improves! But, alas, Trickle Down has nothing to do with creating a healthy economy!
As a policy, Trickle Down only serves to redistribute wealth upward, demand be damned! -Kevo
If we consistently average 370,000 initial (new) jobless claims per week, and we are creating 150,000 new jobs per month, how will the economy ever recover? We need growth. We cannot be taxed into a vibrant economy, spreading more from doers to takers. Wake up.
I couldn't say it any better, TheActivist....yeah, if I was in ReversoWorld. I take risk, employ 100+, pay $100s of $1000s in taxes per year, give $$$$ to charities, take no public assistance EVER (except public schools when I was a kid), never been in jail, and folks like you say I am not doing enough. Think about that. Nuts right?