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Jobless Claims Rise (Due To ‘Computer Glitches’)

From an unquestioning Reuters:

U.S. jobless claims rise, still distorted by processing backlog

By Jason Lange | September 19, 2013

WASHINGTON (Reuters) – The number of Americans filing new claims for jobless benefits rose last week, but it was difficult to get a clear read on the labor market’s health because two states appeared to be working through a backlog of unprocessed claims.

Initial claims for state unemployment benefits increased 15,000 to a seasonally adjusted 309,000, the Labor Department said on Thursday.

Claims data have been thrown into disarray since an update to government computer systems in California, the nation’s most populous state, and Nevada created a backlog in the processing of new claims two weeks ago.

That initially led to a sharp decline in new processed claims earlier this month, and a Labor Department analyst said the two states still appeared to be working through the backlog, which he said could take another week or two.

Funny how we are only hearing about this now.

If taken at face value, the data hinted at a pickup in hiring during September that might make the Federal Reserve more comfortable about a plan to begin winding down a bond-buying economic stimulus program…

BUT:

At the same time, policymakers have recently appeared more demanding about how much better the outlook for hiring must be before they trim monthly bond purchases.

The U.S. central bank surprised investors on Wednesday by saying it wanted to see clearer signs of an improved labor market outlook before scaling back its stimulus program…

"Although claims are progressing on a lower trend, the Fed doesn’t seem to be satisfied about the recent development of the labor market," said Annalisa Piazza, an analyst at Newedge Strategy…

Oh, our sides. Then how come Obama has been bragging about his recovery?

At 314,750, the four-week average was about 5 percent lower than it was during the employment report’s survey week in August, when employers added a lackluster 169,000 jobs to payrolls.

However, even that reading, which smooths [sic] out weekly volatility, could rise in coming weeks if a backlog of claims continues to be cleared…

Isn’t it amazing what one little glitch in two states can do?

Still, someone should tell Bernanke about this glitch. He seems to think unemployment is still a real problem. Or, rather, the folks running the DNC think a stock market collapse before the 2014 midterms might be a bad thing.

This article was posted by Steve Gilbert on Thursday, September 19th, 2013. Comments are currently closed.

5 Responses to “Jobless Claims Rise (Due To ‘Computer Glitches’)”

  1. Bla Bla Bla .. when Doctoral Candidates, Scientists and expert Financial Management are waiting tables part-time .. when factory employees, manufacturing sales reps and lawyers are reduced to 29.9 hours per week .. when holding three 10 hour jobs is labeled Fully Employed … Houston, we have a problem ..

    • But, we have a super cool president with a “dazzling smile”.

      “Go on, shake your grove thing at your 51st White House concert Mr. Creased Pants!”

  2. First they blame ATMs for stealing jobs. Now computers. When will they leak the news about Skynet?


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