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Jobless Rate Drops Unexpectedly – Again!

From the ever surprised Associated Press:

Jobless claims show unexpected improvement

By MARTIN CRUTSINGER, AP Economics Writer

Thursday, June 5, 2008

(06-05) 06:07 PDT WASHINGTON (AP) — The number of laid-off workers filing claims for unemployment benefits showed an unexpected improvement last week although a key indicator of unemployment hit a four-year high.

The Labor Department reported Thursday that applications for unemployment benefits totaled 357,000 last week, some 18,000 fewer than the previous week. That pushed applications for benefits to their lowest level since mid-April.

However, the four-week average for people receiving benefits edged up to 3.086 million, the highest level since March 6, 2004, when the country was still struggling to recover from a prolonged period of rising unemployment.

The increase in so-called continuing claims underscored the problems people are facing with rising layoffs and the difficulty in finding new jobs in a weak economy.

Some analysts said the better-than-expected showing was an aberration that reflected problems the government has in adjusting the claims figures around holidays. Last week covered the Memorial Day holiday when state claims offices were closed.

“Claims will rebound over the next couple of weeks and the underlying trend will continue to grind slowly higher,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

The unemployment report for May will be released on Friday. Analysts are expecting that the overall civilian jobless rate will edge up to 5.1 percent, compared to 5 percent in April, and that businesses will have cut 60,000 jobs, marking the fifth straight month of job losses.

This prolonged stretch of job cuts has many economists believing the country has fallen into a recession.

However, the overall economy as measured by the gross domestic product has managed to remain in positive territory with the GDP growing at an annual rate of 0.9 percent in the first three months of the year.

In other economic news, reports from major chain stores showed that consumers stepped up their shopping in May after tax rebate checks started appearing in mailboxes. Discount and lower-priced stores such as Costco Wholesale Corp and Wal-Mart Stores Inc. were among the strongest performers…

The drop of 18,000 jobless claims applications last week was much better than the unchanged performance that economists had been expecting.

For the week ending May 24, a total of 31 states and territories reported that claims had declined, while 22 reported increases…

It is almost comical how predictable our watchdog media is about economic news.

The number of laid-off workers filing claims for unemployment benefits showed an unexpected improvement last week although a key indicator of unemployment hit a four-year high.

They always put in (questionable) bad news in the same sentence with any good news they are grudgingly forced to report.

However, the four-week average for people receiving benefits edged up to 3.086 million, the highest level since March 6, 2004, when the country was still struggling to recover from a prolonged period of rising unemployment.

They rewrite history however they want to try to make their point.

Too bad so many still fall for their lies.

Some analysts said the better-than-expected showing was an aberration…

They always manage to find or invent an expert to tell us that the good news is just a mirage.

“Claims will rebound over the next couple of weeks and the underlying trend will continue to grind slowly higher,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

And despite having once again to write that the dire predictions have been proved untrue, they always work in a few more predictions from “experts” from prestigious outfits like “High Frequency Economics.” 

Predictions that will once again turn out to be “unexpectedly” inaccurate.

This prolonged stretch of job cuts has many economists believing the country has fallen into a recession.

And of course they always manage to find or invent experts who say we are in a recession, when we simply are not.

But after all, our media are merely the employees of the Democrat Party, and they must do what they are told.

This article was posted by Steve on Thursday, June 5th, 2008. Comments are currently closed.

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