Initial jobless claims numbers from last week are out and it’s not good news. Of course, the news was quite unexpected.
The number of Americans filing for jobless aid rose last week to the highest level since January, a development that could raise fears the labor market recovery was stalling after job creation slowed in March.
Initial claims for state unemployment benefits increased 13,000 to a seasonally adjusted 380,000, the Labor Department said on Thursday, defying economists’ expectations for a drop to 355,000.
The four-week moving average for new claims, considered a better measure of labor market trends, rose 4,250 to 368,500.
Some economists blamed the Easter holidays for the spike in claims and expected applications to trend lower in coming weeks.
I can’t wait to hear how the Democrats and their allies in the media spin the bad news. I doubt it will sound anything like this:
So much for the endless string of “Jobless Claims in US fall to lowest since 2008” propaganda. First of all, just as we predict every week with 100% accuracy, last week’s “decline” from a revised 363K to 357K was revised, and instead it surged from 357K to a revised 367K. So much for the spin. More importantly, the current weekly claims number exploded to 380K, on expectations of 355K – the highest print since January, and the biggest claim miss in a year! And also just as predicted, the “economic weakness” period to butter up the country for the NEW QE begins. Don’t be surprised as claims surge to close to 400K in the next few weeks in advance of an epic BLS miss next month, all to be blamed on the “warm weather”, “Chinese new year”, “Sumatra earthquake” and “Bush” of course, it never happens just because, in time for the FOMC’s June meeting to set the stage for MBS LSAP, just as Bill Gross has been expecting all along. (Read More)
You know what else this means? Obama’s nasty class-warfare rhetoric will get even worse.
Update: Linked by Lady Liberty – thanks!