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AP: New Unemployment Claims Plunge

From a joyous Associated Press:

Fewer people applied for jobless aid last week

Christopher S. Rugaber, AP Economics Writer, On Thursday February 3, 2011

WASHINGTON (AP) — The number of people applying for unemployment benefits plunged last week, reversing a spike from the previous week largely caused by harsh winter weather.

What a sentence.

Applications for benefits dropped by 42,000 to a seasonally adjusted 415,000 in the week ending Jan. 29, the Labor Department said Thursday. They had surged in the previous week after snow storms in the South disrupted work and led to temporary layoffs.

Again, in our entire life we have never heard of anyone being laid off because of a snow storm. And we highly doubt that people laid off for a day or two can apply for unemployment benefits.

By the way, even last week’s dramatically high new claim figures were revised up, just as they always are. Which the AP once again fails note.

Applications are well below their peak of 651,000, reached in March 2009, when the economy was deep in recession. Fewer than 425,000 people applying for benefits is consistent with modest job growth. But applications will need to fall consistently below 375,000 to signal a likely decline in the unemployment rate.

Then why say 425,000 new claims means modest job growth if the unemployment rate will not go down unless the number is below 375,000?

Last week’s decline resumes a downward trend that took shape late last year.

According to the Bureau Of Labor Statistics, the unemployment rate for October 2010 was 9.7%, for November it was 9.8%, for January it was 9.4%. So this "downward trend" has lasted for all of one month.

The average [unemployment rate] rose in January, mostly because of seasonal factors, such as the harsh weather and the layoff of temporary holiday employees

If they don’t account for the weather and holidays, why do they keep calling these figures "seasonally adjusted"?

Despite the decline in unemployment benefit applications, employers have been slow to add jobs. One factor holding back job gains is that workers are becoming increasingly efficient and productive. That enables companies to produce more without hiring more workers

That must be it. There just couldn’t be any other explanation.

Such as fear of the costs of Obama-care or higher taxes in general.

Employers will likely create a net total of 2.2 million jobs this year, according to a survey of economists by the AP. That’s double the number that was generated in 2010

The administration’s flacks at the AP really are relentless. – And shameless.

This article was posted by Steve on Thursday, February 3rd, 2011. Comments are currently closed.

8 Responses to “AP: New Unemployment Claims Plunge”

  1. BannedbytheTaliban says:

    Here is a dumb, but only for being rhetorical, question for our media masters: how come this week’s massive snow storm, that brought far more snow to far more people, is not affecting these unemployment numbers?

  2. tranquil.night says:

    If the AP wants to talk harsh winter weather, why not mention global wheat prices have skyrocketed 13% since December, with worse news coming in all the time. http://online.wsj.com/article_email/SB10001424052748703960804576120233768771582-lMyQjAxMTAxMDAwMjEwNDIyWj.html

    Nope, no inflation here!

    “So the next time someone tells you that the US Dollar and the policy that backs it doesn’t matter to the price of the Number One food staple for 3 billion of the world’s people (rice), forward them the math. Risk managers like me wouldn’t be perpetuating higher food prices by trading them with a bullish bias if we didn’t fully expect American policy makers to let its currency burn.” http://finance.fortune.cnn.com/2011/02/01/egypt-and-the-growing-problem-of-global-inflation/

  3. untrainable says:

    Employers will likely create a net total of 2.2 million jobs this year, according to a survey of economists by the AP. That’s double the number that was generated in 2010… And how much did those jobs cost the American taxpayer? Billions? Trillions?

    Are these the same economists that touted “Recovery Summer”? Are these the same economists that are consistantly proven wrong by the numbers? Are these the same economists who are consistantly surprised by reality? Are these the same economists who have their numbers revised every stinking week because they are consistantly WRONG? Are these the same economists that think Obama is doing a good job on the economy and his laser-like focus on job creation? Are these the same economists that think government creates jobs by spending money that we have to borrow from China? It is? Thought so.

    • tranquil.night says:

      The Fed owns more in treasuries now than China, that’s how fast they’re printing, and how toxic T-bill sales are getting abroad.

  4. proreason says:

    Alice in Wonderland, Chapter 105

  5. wardmama4 says:

    Since we do not live with our hands perpetually out and nor are our souls perpetually aggrieved – I do not know this for a fact, but sense it is true – these figures do not include people like my daughter and husband – who just graduated (May & Dec 2010 respectively) from college and thus are unemployed but can not file for unemployment. Nor I, whose last real job was 1998 (Census) and now would desperately love to bring in an income – but alas 12 years of ‘not working’ and my age – make me a less than desirable candidate. And thus (by design I am sure) none of us register at all in their vaulted unemployment stats. At. All. Ever.

    And we’ve got a friend – still in college who got messed up (due to the changes our former Dem Gov & Obama did to the school loan system) who couldn’t take classes and alas found out too late into the new term to get a co-op job – so he too is just sitting around (’til March for him).

    The daughter is in negotiations with the Army for her knowledge and service. At least she (being young) has some options.

  6. Reality Bytes says:

    yeah they were all snowed in like the rest of us.

    • Liberals Demise says:

      Global Warming of the brain or slurpee brain freeze…..take your pick.
      AP wouldn’t know the news worth reporting if it patted them on the arse.

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