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Jobless Claims Up ‘But Labor Recovery Grinds On’

From an ever spinning Reuters:

Jobless claims rise, but labor recovery grinds on

By Jason Lange | July 11, 2013

WASHINGTON (Reuters) – The number of Americans filing new claims for unemployment benefits rose last week, although the level still appeared to point to healing in the nation’s job market.

Nothing points to a healing job market like higher unemployment claims.

Initial claims for state unemployment benefits increased by 16,000 to a seasonally adjusted 360,000, the Labor Department said on Thursday…

For the record, the non-seasonally adjusted real life number of new claims was up 49,778 from the previous week. And, as always, last week’s new claims number was revised up.

Even with the increase, the number of layoffs remains in the range of the levels seen over the last year, and is consistent with a continued drop in the unemployment rate…

This is simply untrue. The only thing driving down the unemployment rate is more and more people giving up and leaving the workforce.

Economists polled by Reuters had expected first-time applications to fall to 340,000 last week…

So, this was unexpected? Even though it happens just about every week.

The U.S. labor market has shown signs of strength in recent weeks, with 195,000 jobs added to payrolls in June. This has cemented expectations the Federal Reserve will start winding down its massive stimulus program as early as September…

What a laugh.

From the Associated Press:

Bernanke: US economy still needs Fed’s stimulus

By MARTIN CRUTSINGER | July 10, 2013

WASHINGTON (AP) — Chairman Ben Bernanke said Wednesday that the U.S. economy still needs help from the Federal Reserve’s low interest rate policies.

Bernanke told the National Bureau of Economic Research that because unemployment remains high and inflation is below the Fed’s target, the policies are still necessary.

Doesn’t Mr. Bernanke read the newspapers? "The US labor market is showing signs of strength."

He also said the economy is being held back by higher taxes and federal spending cuts.

It’s funny how we never heard that higher taxes hurt the economy before. Moreover, who really believes that cutting government spending hurts the economy?

"If you put all of that together, you can only conclude that highly accommodative monetary policy for the foreseeable future is what is needed for the U.S. economy," Bernanke said.

"Highly accommodative monetary policy" is bureaucrat-speak for ‘printing $85 billion dollars a month.’ 

Stock index futures rose as Bernanke spoke. The Standard & Poor’s index futures were up eight points, or 0.5 percent, at 1,656 as of 5:40 p.m. Eastern Daylight Time — shortly after Bernanke wrapped up his remarks…

Bernanke [also] said 6.5 percent unemployment is a threshold, not a trigger: The Fed might decide to keep its benchmark short-term rate near zero even after unemployment falls that low…

Which is in no danger of happening anytime soon.

This article was posted by Steve on Thursday, July 11th, 2013. Comments are currently closed.

One Response to “Jobless Claims Up ‘But Labor Recovery Grinds On’”

  1. Noyzmakr says:

    We were told several years ago that Bernanke was an expert on the Great Depression. If that’s true then I’m an expert on life. He and I both are having about the same amount of success in our fields of expertise.

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