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AP: Jobless Rolls Drop (New Claims Up)

From the (now) ever hopeful Associated Press:

Jobless benefit rolls drop sharply to nearly 6.7M

By Christopher S. Rugaber, AP Economics Writer

WASHINGTON – The total number of people on the unemployment insurance rolls dropped for the first time since early January, the government said Thursday, while new claims for benefits rose slightly.

The report shows that job losses are easing after companies made deep cuts earlier this year. But it’s not clear whether recipients of unemployment insurance are finding new jobs or simply using up all their benefits, which typically last 26 weeks.

"It is unlikely that new hiring has picked up in any meaningful fashion," Joshua Shapiro, chief economist with MFR Inc., a consulting firm, wrote in a note to clients. "More probable is that long-term unemployed are starting to fall off the rolls."

The Labor Department said the total unemployment insurance rolls fell by 148,000 to 6.69 million in the week ending June 6, the largest drop in more than seven years.

The drop also breaks a string of 21 straight increases in continuing claims, the last 19 of which were records. A dip in continuing claims several weeks ago was later revised higher.

Initial claims rose by 3,000 to a seasonally adjusted 608,000 in the week ending June 13, above analysts’ expectations. The four-week average, which smooths fluctuations, fell by 7,000 to 615,750. Continuing claims data lags initial claims by one week.

The four-week average is at its lowest level since mid-February, further evidence that the pace of job cuts is slowing.

In another encouraging sign, the Conference Board on Tuesday said its index of leading economic indicators rose for the second consecutive month in May after seven straight declines. The index rose 1.2 percent last month and by the same in amount in the six-month period ending in May, the first time that measure has grown since April 2007…

The drop could also signal a slowing in the rise of the unemployment rate, economists said, which reached a 25-year high of 9.4 percent in May. Many economists forecast the rate could reach 10 percent by the end of the year.

The financial markets rose in morning trading. The Dow Jones industrial average added about 75 points, and broader indices also gained…

Once again the Associated Press puts a headline on a story that makes things seem better than they probably are.

Why is that?

By the way, at first it looked like Reuters did not get the memo.

From Google:

(Click to enlarge.)

But they soon corrected their error:

Green shoots in U.S. jobs, factories and indicators

Thu Jun 18, 2009

By Burton Frierson

NEW YORK (Reuters) – More green shoots of recovery sprouted in the U.S. labor market, according to the latest data, while the slumping factory sector showed dramatic signs of improvement and a gauge of the overall economy also jumped.

The number of U.S. workers filing new claims for jobless benefits rose last week but the number of people staying on the benefit rolls after collecting an initial week of aid fell for the first time since January, a government report showed.

Manufacturing in the U.S. Mid-Atlantic area contracted in June for the ninth consecutive month but much less severely than expected and far less than in the previous month, a regional Federal Reserve survey showed…

Who dares call them state-owned media?

This article was posted by Steve on Thursday, June 18th, 2009. Comments are currently closed.

8 Responses to “AP: Jobless Rolls Drop (New Claims Up)”

  1. canary says:

    The workers in that office are all bundled up in coats. Cold fingers don’t type well, but may be a way when Obama raises fuel costs on the poor to go green.

    • tranquil.night says:

      Cold cubicles in a tech assembly line. It’s like a dark, back alley job soup kitchen. Oops, wait that’s how Obama has always seen and described America.

      “615,750” I get so confused with these monthly numbers and stats. So that’s the new initial jobless claims but NOT the jobs lost number? That positive news is still forthcoming I guess.

      Haha @reuters, they’re an epic fail lately. They should get a fail award for their Iran coverage, which consists of only spreading the spew of Ahmadinejad and his regime’s media.

  2. Liberals Demise says:

    Here is their example:

    It has been 6 months without rain then all of a sudden 4 drops of water fall from the sky. AP headline reads…………………

    Love that oxymoron “Jobless rolls drop (New claims up)”

  3. proreason says:

    A smart S&L commentor mentioned summer jobs a few days ago. One would expect jobs to increase temporarilly in the summer, wouldn’t one?

    And then there is this “The drop also breaks a string of 21 straight increases in continuing claims”. Now, at some point, one would expect people’s benefits to run out, wouldn’t one?

    Basically, these statistics are complicated, and easy to interpret in different ways.

    For the country’s sake, let’s hope these are “green shoots”……but this data, if an indication at all, is pretty meager.

  4. texaspsue says:

    Do you get the feeling that we are being “Bagdad Bob”ed???? How is almost 10% unemployment a “green shoot”. Sheesh!

  5. MinnesotaRush says:

    A “green shoot” fed by manure! Stinky, pasty manure!!!

    Known in some circles as “Bullshit”!!!

  6. MinnesotaRush says:

    o-blah-blah: “By this time next week, we will uhhhhhh, have saved or created uhhhhh. 6 kabillion jobs! And then when we get national health care, blah blah blah .. blah blah blah .. blah blah blah blah.”

    Followed by Bullshit Biden: “We’re pretty sure we’re guessin’ right this time! La, la, la .. la, la la …”.

  7. VMAN says:

    The O never told us that the “shovel ready jobs” were to handle all the crap coming from the lap dog media.

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