Initial Jobless Claims Drop When ‘One Large State’ Does Not Report Numbers


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The jobless numbers are out and the media is reporting that it’s great news.  The number of initial unemployment claims fell by a massive 30,0000 from last week’s upwardly revised number. But there is a catch, “one large state” did not report its numbers to the Labor Department.

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 A Labor Department economist said one large state didn’t report additional quarterly figures as expected, accounting for a substantial part of the decrease.

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So the report is not complete and the number is totally bogus, but Joe Biden gets his talking point for this evening’s debate. Tyler Durden summed it up the best:

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This is just getting stupid. After expectations of a rebound in initial claims from 367K last week (naturally revised higher to 369K), to 370K (with the lowest of all sellside expectations at 355K), the past week mysteriously, yet so very unsurprisingly in the aftermath of the fudged BLS unemployment number, saw claims tumble to a number that is so ridiculous not even CNBC’s Steve Liesman bothered defending it, or 339K. Ironically, not even the Labor Department is defending it: it said that “one large state didn’t report some quarterly figures.” Great, but what was reported was a headline grabbing number that is just stunning for reelection purposes.

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Read the whole thing. He also wonders why QE3 is still ongoing with all of this “great” news the government keeps reporting. Good question.

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